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On Thursday, Deutsche Bank (ETR:DBKGn) maintained its Hold rating on Terna SpA (BIT:TRN:IM) (OTC: TERRF), with a price target set at EUR8.50. The decision follows Terna’s recent presentation of a robust industrial plan, which included adjustments to its dividend policy. Deutsche Bank’s updates to their financial forecasts for Terna indicate an increase of 3-4% in medium-term earnings projections and approximately a 10% increase for the year 2025. The more significant uplift for 2025 is attributed to the acceleration of ’fast money’—additional cash flows that enable quicker depreciation of the Regulatory Asset Base (RAB).
The updated estimates by Deutsche Bank suggest that earnings could surpass Terna’s own guidance, primarily due to higher expected incentive rewards and the potential for additional hybrid issuance. While acknowledging these factors, Deutsche Bank’s projections for Terna’s earnings are roughly 10% higher than the consensus among other analysts.
Terna’s adjusted dividend policy and industrial plan appear to be key elements influencing Deutsche Bank’s outlook. The bank’s analysts have recalibrated their expectations for Terna’s incentives and reduced their estimates for ’fast money’ in the medium term. These adjustments reflect a nuanced view of the company’s financial trajectory over the coming years.
Terna’s industrial plan seems to be well-received, with Deutsche Bank’s projections indicating confidence in the company’s ability to generate additional cash flows and manage its assets efficiently. The bank’s estimates, which are more optimistic than the market consensus, offer insight into Terna’s potential performance relative to industry expectations.
Investors and market watchers will likely monitor Terna’s progress closely, as the company aims to meet or exceed the financial targets outlined in its industrial plan. With Deutsche Bank’s estimates serving as a benchmark, Terna’s future earnings reports will reveal the accuracy of these projections and the company’s success in implementing its strategic initiatives.
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