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Investing.com - RBC Capital upgraded Italgas SpA (BIT:IG) from Sector Perform to Outperform and raised its price target to EUR9.00 from EUR6.80.
The upgrade comes despite Italgas’s strong year-to-date performance, with RBC Capital noting the company remains attractively valued based on its price-to-earnings ratio.
RBC Capital highlighted Italgas’s estimated annual earnings per share growth of approximately 10% until 2030, pointing out that the company trades at the lowest PE multiple compared to other Italian regulated networks.
The market has absorbed this year’s significant increase of over EUR1 billion without major problems, according to RBC Capital’s analysis.
The firm views the 2i Rete acquisition as a transformational deal expected to drive substantial medium-term earnings per share growth for Italgas.
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