(Telestock) – Equity has increased to 7.7 euros per share (+6%) the target price on Is in theconfirming the recommendation “Buy” on the Italian energy giant. Analysts believe that the 2Q24 results have provided positive signals, with numbers above expectations, a solid growth of EBITDA at +6% in 2Q (+9% in 1H) and a FY24 EBITDA guidance that points to the “top” of the range 22.1-22.8 billion euros.
Following the 2Q results, they have therefore raised EBITDA estimates of +4%/+5% on 2024-25 and +1% from 2026, noting that Enel is among the least indebted companies in the sector (D/EBITDA 2.4x) and with one of the highest yields (7.3% on 2024).
Equita believes that Enel: both very well positioned to take advantage of the ongoing decarbonisation process (growth of RES and associated GRIDS), with a large customer base on which to exploit the benefits of integrated margin management; has its NFP debt turnaround is almost complete which, with the expectation of 2.4x D/Ebitda by the end of the year, is among the groups with the lowest indebtedness in the sector (together with Endesa) and one of the highest dividend yields (7.3%-7.9% over the plan period); it has a more balanced approach to capital allocationwith a greater focus on cash generation and investment flexibility, a solid liquidity position and greater exposure to regulated businesses.