Eni downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley analyst Martijn Rats downgraded Eni (E) to Equal Weight from Overweight with a price target of $31.60, down from $37.50 as part of a broader research note previewing 2025 in the Energy sector. Oil & gas have mixed prospects in 2025, with Gas markets looking robust, but the oil market seen as well supplied, and downstream margins likely remain under pressure, the analyst tells investors in a research note. Morgan Stanley adds that while it still foresees minor downwards pressure on consensus earnings estimates, after sharp declines, the firm believes that earnings downgrade cycle is nearing completion. For Eni however, the firm notes that the stock’s run-up has compressed the company’s total distribution yield significantly. Morgan Stanley adds that near-term catalysts are not easy to identify, and without guidance for a higher percentage payout, outperformance would need to rely on compression of the distribution yield.