Redburn cuts Eni stock rating to neutral, lowers target to EUR13.40

Published 23/04/2025, 10:10
Redburn cuts Eni stock rating to neutral, lowers target to EUR13.40

On Wednesday, Eni SpA ( ENI (BIT:ENI):IM) (NYSE: E) experienced a change in stock rating as Redburn-Atlantic downgraded the energy company’s shares from Buy to Neutral. The research firm also revised the price target for Eni’s stock, reducing it to €13.40 from the previous target of €17.50. The stock, currently trading at $28.48, sits between its 52-week range of $24.65 to $33.30, with a market capitalization of $42.4 billion.

The downgrade by Redburn-Atlantic reflects a cautious stance on Eni’s stock, stemming from the company’s exposure to the oil market. Despite acknowledging Eni’s successful strategy execution, Redburn-Atlantic pointed out the company’s significant leverage to the oil sector, which could be a concern in a potentially weakening macroeconomic environment. According to InvestingPro data, Eni maintains a "GOOD" overall financial health score, with particularly strong metrics in relative value and price momentum.

Eni has been recognized for its growth in production, which is projected to continue through to 2030. The company has also been noted as one of the few major energy firms that has effectively created value in the renewable and low carbon sectors. This achievement, however, has not fully alleviated the concerns regarding the company’s performance amid fluctuating oil prices. The company offers a notable 5.27% dividend yield and trades at a P/E ratio of 15.9x, while generating annual revenue of $94.4 billion.

The research firm’s decision to downgrade Eni’s stock rating is based on the difficulty in identifying a catalyst that would drive the stock to outperform its peers, especially given the current economic landscape. The adjustment in the price target to €13.40 from €17.50 further underscores the firm’s revised expectations for Eni’s stock performance.

Eni’s shares on the New York Stock Exchange (NYSE: E) will continue to be monitored by investors as they assess the impact of Redburn-Atlantic’s rating change and price target adjustment. The company’s future endeavors in both traditional energy and renewable sectors will likely influence investor sentiment and the stock’s trajectory moving forward.

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

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