(Finance) – Well set up Is in the on the stock exchange, where it recorded a progress of almost 1%, after Jefferies’ rating indicated a Buy and raised the Target Price by 23% to 8 euros per share, believing that the company is undervalued compared to its peers such as EDP and Iberdrola.
Jefferies analysts also revised their earnings per share (EPS) estimates for 2024-2026 upwards by 4%, reflecting rising electricity demand.
For the first half results due on July 25, earnings growth of around 6% is expected. More specifically, Jefferies estimates EBITDA of €11.5 billion (+7%) and net income of €3.5 billion (+6%). In this way, analysts believe the company is well positioned to reach the high end of its full-year EBITDA forecast of €22.8 billion.
Comparing the performance of the stock with the FTSE MIBon a weekly basis, it is noted that the energy group maintains positive relative strength compared to the index, demonstrating greater appreciation by investors compared to the index itself (weekly performance +3.07%, compared to +1.09% of the main index of the Milan Stock Exchange).
The short-term implications of Is in the underline the evolution of the positive phase at the test of the resistance area 6.92 Euro. A drop to the bottom 6.795 is possible. A strengthening of the curve is expected at the test of new targets 7.045.