Citi cuts Enel stock rating to neutral, price target steady at EUR7.40

Published 08/04/2025, 08:18
Citi cuts Enel stock rating to neutral, price target steady at EUR7.40

On Tuesday, Citi analysts adjusted their stance on Enel (BIT:ENEI) SpA (ENEL:IM) (OTC: ENLAY), downgrading the stock from 'Buy' to 'Neutral', while maintaining a price target of EUR 7.40. The revision reflects Citi's outlook on the shares now being fairly valued, considering the expected normalization of power prices and retail margins over the next three years.

The analysts noted that Enel's stock continues to trade at one of the lower multiples among integrated utilities. However, they believe that the current stock price adequately reflects the anticipated changes in the market conditions. Enel's net long retail position is expected to offer some short-term protection for its group earnings. Yet, the analysts anticipate that lower commodity prices will eventually have a net negative impact as they affect inframarginal profits and as retail competition intensifies.

Citi's report acknowledges Enel's status as a robust company, indicating that the shares are now appropriately priced based on their projections. The analysts expressed a willingness to re-evaluate their position if there is any unwarranted significant drop in the stock's value.

The price target of EUR 7.40 remains consistent with Citi's previous assessments. This target is based on a 12-month projection, during which the analysts expect the company to perform in line with their current valuation. Enel's stock rating change by Citi is a strategic decision informed by market trends and the company's financial outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.