Stock down 2.98% (Il Sole 24 Ore Radiocor) - Milan , 17 Jun - Shares of the Italian renewable energy developer and operator ERG were sharply lower in Milan trade, after analysts at Bank of America came out with an "underperform" recommendation on the stock and set a target price of 23 euros per share.

At 1030 GMT, ERG shares were down 2.98% to 24.06 euros, while the benchmark FTSE MIB was up 0.15% at 32,713.37 points.

According to BofA analysts, there are no particular catalysts driving the stock's performance at the moment. That could change, however, with a greater than expected growth in repowering of wind projects, an acceleration of its penetration in the US market or a possible takeover on the part of IFM, the Austrian fund that owns 49% of the holding company that controls ERG.

In an interview with the Italian daily Corriere della Sera, however, ERG chairman Edoardo Garrone said that IFM's bolstering of its stake in the group was part of their agreement with ERG. "IFM has global experience in renewables," Garrone said. "It accepted remaining in the minority in ERG and ERG remaining on the stock market." The ERG chairman stressed that the company will not delist its shares from trading. "For us the stock market is a value for growth and for the management of the company," he said.

AAA-Hob

(RADIOCOR) 17-06-24 12:37:36 (0233) 5 NNNN