SNAM S.p.A. (0NQP – Research Report), the Energy sector company, was revisited by a Wall Street analyst today. Analyst Roberto Ranieri from Stifel Nicolaus maintained a Buy rating on the stock and has a €5.90 price target.
Roberto Ranieri has given his Buy rating due to a combination of factors that highlight SNAM S.p.A.’s strong financial prospects and strategic positioning. The company’s regulated business is expected to drive significant EBITDA growth in FY24, which will be a key contributor to the overall positive financial performance. This growth is supported by higher returns on assets in transportation and storage, as well as increased revenues from LNG regasification.
Additionally, SNAM’s focus on the energy transition, particularly the role of gas in this process, aligns with long-term industry trends. Despite market concerns about the future of gas, Ranieri believes that SNAM’s strategic investments in multi-molecule and multi-technologies assets will provide substantial benefits. Furthermore, the stock offers an attractive dividend yield, which enhances its appeal to investors seeking income in a low-interest-rate environment.
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