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Hold Rating for Terna S.p.A. Amid Strategic Updates and Moderate Growth Prospects

Hold Rating for Terna S.p.A. Amid Strategic Updates and Moderate Growth Prospects

Stifel Nicolaus analyst Roberto Ranieri has maintained their neutral stance on 0LBM stock, giving a Hold rating today.

Roberto Ranieri’s rating is based on Terna S.p.A.’s recent strategic updates and financial outlook. The company has announced an enhanced industrial plan for 2024-2028, which includes a significant increase in capital expenditures aimed at supporting the energy transition. This plan is expected to drive a moderate growth in the Regulatory Asset Base (RAB) and financial metrics, aligning with the company’s long-term development goals.
Despite the positive outlook, the financial targets set by Terna are largely in line with existing expectations, leading to a Hold rating. The improved dividend policy, which includes a 17% increase for 2024 and establishes a new floor, is a positive development for investors. However, the anticipated growth in earnings and revenues does not present a compelling enough case for an upgrade in the stock rating at this time.

In another report released today, Barclays also maintained a Hold rating on the stock with a €8.20 price target.

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