Enel downgraded to Market Perform from Outperform at Bernstein

Bernstein downgraded Enel (ENLAY) to Market Perform from Outperform with an EUR 8.90 price target as the firm believes the stock is no longer inexpensive. Enel’s significant year-to-date share price gains have been driven primarily by multiple expansion rather than earnings growth, Bernstein adds. The stock has re-rated from a 1-yearr forward price to earnings of 10.1 to 12.3 times, while Bloomberg consensus FY25/FY26 EPS estimates have barely moved. Enel now trades at a 5% premium to its historical price to earnings, with dividend yield in line with historical averages and the spread over 10-year sovereign yields compressed, the firm says.