(Tiper Stock Exchange) – Equity confirmed a 1.84 euros per share the target price up A2Aan Italian multi-utility listed on Euronext Milan, also maintaining the recommendation “Buy“. The review of the judgment comes just a few weeks after the update of the company’s 2021-30 Strategic Plan, which envisages a reduction in capex in the period 2023-26 compared to the previous plan from 1.8 billion annually to 1.4 billion per keep leverage under control and confirm both the investment grade debt rating and the dividend policy.
Analysts confirmed their assessments for three reasons: management’s decision to cut 2023-26 capex to keep leverage under control and confirm the dividend policy is encouraging; the 2023 EBITDA target of €1.6 billion (+7% YoY), despite the cap on the price of hydroelectric generation at €58/MWh, confirms the potential of A2A in the current scenario of high commodity prices; the stock trades on attractive 2023 multiples, with a PE of 10x (sector at 11x), EV/EBITDA at 6.2x and dividend yield at 6.7% (sector at 6%).
Meanwhile, it is moving downwards A2A with prices in line with 1.273 euros, per a drop of 1.93%. The higher expectations see an extension of the downside towards the support area estimated at 1.262 and next at 1.252. Resistance at 1.293.