Enel Chile initiated with a Buy at Citi

Citi initiated coverage of Enel Chile (ENIC) with a Buy rating and CLP 62 price target The firm says high levels of hydro generation thanks to stored energy in dams will keep easing pressure on spot prices, reducing spot purchase costs, resulting in an improved margin EBITDA for the company. Enel Chile’s stable cash generation provides room for future renewable projects and its 8.5% dividend yield is attractive relative to peers, the analyst tells investors in a research note.