(CercleFinance.com) – Enel lost almost 2% to Milan while Jefferies downgraded its recommendation on the stock, going from ‘buy’ to ‘hold’ with a price target lowered from 7 to 6.5 euros, despite the presentation by the group’s new management of a ‘reasonable business plan with an attractive dividend’.
‘Although we consider that 2024 profits will be mainly protected by hedges, we are less convinced of outperformance beyond that in the context of rapidly falling electricity prices in Europe,’ warns the broker.
Jefferies continues to appreciate the Italian energy group’s business model, but says it ‘does not see any short-term catalyst that could help the stock revalue significantly’.
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