Enagas SA (ENG:SM) (ENGGY) downgraded at CFRAThe analyst commented: "We cut our target price for Enagas (ENG) to EUR13 (EUR17), based on 2024 EV/EBITDA of 7.3x, a discount to its peer average EV/EBITDA of 11.3x, justified by its relatively weaker earnings growth prospects. We keep 2024 EPS at EUR1.02 and introduce 2025 EPS of EUR0.90. ENG’s 2023 revenue fell 5.2% Y/Y to EUR920 mln, below consensus estimate of EUR938 mln. Still, EBITDA only fell 2.2% Y/Y to EUR780 mln, exceeding annual target owing to the effectiveness of its cost efficiency initiatives. While industrial gas demand recovered in H2 2023 by 22% Y/Y, we think this may not reverse the fall in total Spanish gas demand and earnings growth. ENG introduced a 2024 target of EUR775-EUR915 mln adjusted EBITDA. With a net investment in hydrogen of EUR3.2bln, ENG slashed dividends by 43% to EUR1/sh. We view a cut in dividend as more sustainable without asset disposal, while hydrogen investments could spark growth in long-term Spanish gas demand but unlikely to improve by 2026, in our opinion. Hence, we downgrade ENG to Sell."