Stock up 1.48% (Il Sole 24 Ore Radiocor) - Milan, 25 Jun - Shares of the Italian utility Enel were higher in Milan trade, after Barclays reaffirmed its "overweight" recommendation on the stock and indicated a target price of 8 euros per share.

At 0900 GMT, Enel shares were up 1.48% to 6.639 euros, while the benchmark FTSE MIB index was 0.18% lower at 33,772.91 points.

According to Barclays analysts, Enel's capital reallocation plans will continue in the next three years, with a reorganization of its subsidiaries in Italy, Spain, Chile, Brazil and Colombia. Barclays is not concerned about eventual contagion effects tied to French political uncertainty, as its expects stable governments in the next 12 months in Italy and Spain, where Enel has a strong presence.

Enel is also expected to benefit from factors like an increase in network investments and its exposure to a long positive cycle for the retail power sector, particularly in Italy.

According to Barclays, Enel also boasts an attractive restructuring story, with the goal of cost synergies of 1.2 billion euros a year by 2026, while it is also seen benefiting from the growth of data centers in both Italy and Spain.

Nonetheless, Barclays also cut by 1% its 2024 earnings per share estimates for 2024 (0.67 euros), 2025 (to 0.68 euros) and 2026 (to 0.70 euros). At the same time, it sees Enel's shares as among the cheapest in its sector in Europe.

AAA-Hob

(RADIOCOR) 25-06-24 11:12:40 (0256) 5 NNNN