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Investing.com - RBC Capital has downgraded Snam SpA (BIT:SRG) (OTC:SNMRY) from Outperform to Sector Perform, while lowering its price target to EUR5.15 from EUR5.30.
The downgrade reflects RBC’s assessment that Snam’s anticipated growth trails behind Italian network peers, with an estimated EPS CAGR of only 2% from 2025 to 2030.
RBC Capital highlighted that investments in biomethane and OGE have delivered poor returns and added uncertainty, while the post-energy-crisis RAB growth boost is fading.
Despite these challenges, RBC notes that Snam is showing strong EPS growth in 2025, with RBC estimating approximately 14% growth for the year.
The firm believes the projected dividend yield of over 6% for 2026 provides sufficient support for the Sector Perform rating, despite the growth concerns.
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