Roberto Ranieri, an analyst from Stifel Nicolaus, reiterated the Hold rating on Terna S.p.A. (0LBM – Research Report). The associated price target is €8.30.
Roberto Ranieri’s rating is based on a combination of factors that reflect both the current and future financial outlook of Terna S.p.A. The company is expected to report a 12% year-over-year revenue improvement for FY24, with a significant portion of this growth having already occurred in previous quarters. Despite this, the fourth quarter of 2024 is anticipated to show flat revenue growth compared to the previous year. Additionally, while there is an expected 15% year-over-year improvement in EBITDA due to higher revenue from regulated business, net financial costs are likely to rise slightly due to increased net debt.
Ranieri also considers the updates to Terna’s 2024-28 Business Plan, which includes a slight increase in capital expenditures as part of the 10-year Development Plan 2025-34. This is expected to lead to a modest annual growth in the regulated asset base and a 5% increase in EBITDA by 2028. However, the share price already reflects these prospects, including the potential for dividend growth. Consequently, the Hold rating is maintained as the current valuation appears to adequately incorporate the anticipated benefits from the updated capex plans.
In another report released yesterday, UBS also maintained a Hold rating on the stock with a €8.10 price target.
0LBM’s price has also changed slightly for the past six months – from EUR8.090 to EUR7.910, which is a -2.22% drop .
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