Investing.com – Following the publication of Enel 's (BIT:ENEI) half-year results, analysts at Jefferies reaffirmed their “Buy” rating on the stock, raising their target price from €6.5 to €8, or more than 20% higher than the €6.66 per share closing price on July 25.
In fact, thanks to "robust hydroelectric production, as well as continued growth in the integrated business," the Italian energy giant's accounts have exceeded the investment bank's expectations.
In particular, the EBITDA of the company led by CEO Flavio Cattaneo between January and June 2024 stood at €11.7 billion, up 9% on the previous year and 2% higher than experts' expectations. In the same period, net profit was €3.96B, +21% year on year, exceeding Jefferies' estimates by 13%.
Based on these results, Enel has raised the bar of its objectives, forecasting that in 2024 profits will be positioned at the high end of estimates (between €6.6B and €6.8B) and expressing confidence regarding the EBITDA target for 2026 set at an average of €24B. The latter target would imply a 3% increase compared to analysts' expectations.
“We believe today’s upgrade supports the positive outlook highlighted in our recent Buy recommendation,” Jefferies said in a report.
Enel – concludes the broker – “trades at a considerable discount compared to its competitors, which is not justified based on our market analysis, in which Enel is well positioned in terms of its business mix, returns, and balance sheet.”
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