Enel going against Piazza Affari: up 10 sessions
After closing yesterday’s session with a rally of over 3%, the title is still pushing forward today and conquering the second position in the Ftse Mib basket, experiencing the tenth consecutive session in progress.
In the last minutes, Enel is trading at € 6.884, with a 1.35% increase, slowing down from the top intraday at € 6.978.
To date, over 29 million shares have transited the market, compared to the average of the last 30 days of approximately 42 million pieces.
Ene: acceleration on the coal exit plane
Enel continues to rise in Piazza Affari in the wake of the news arrived from the company which yesterday announced an acceleration of the coal phase out plan.
The electric giant would have obtained the green light for the closure of group 2 of the Brindisi coal plant (660 MW out of a total of 2640 mw) since January 2021.
The plant will then be converted back to gas and photovoltaic and definitively closed in 2025.
Enel also anticipated the closure of the Bocamina plant in Chile, requiring the government to be able to stop the first 128MW unit already at the end of 2020, compared to 2023, and the second 350 MW unit in 2022 against the initial request of 2040.
Enel under the lens of Equita SIM
The Equita SIM analysts point out that the anticipation of the closure in Chile could lead to further write-offs for around 790 million euros, which however will not affect Enel’s dividend policy and ordinary results, being non-cash and non-recurring.
As already happened for the closure of the other coal plants in other countries, and having the production of this type having a minimal impact on the group results, the Milanese SIM believes that the closure effect is already a foregone conclusion.
This given the low margin and the lower amortization downstream of the write offs that could have a positive net effect on the group profit.
Finally, Equita SIM analysts recall that, as already announced in recent months, Enel has finalized the purchase of an additional 5% controlling interest in Enel Americas, rising to 62.3% through the exercise of the share swap contracts stipulated. in June 2019.
The experts of the Milanese SIM reiterate a positive view on Enel, with a “buy” recommendation and a target price at 8.1 euros.
Enel: Bernstein sees 22% upside
Bernstein also bet on the share, which today reiterated the “outperform” rating, with a target price of 8.4 euros, which implies an upside potential of around 22% compared to the current stock market prices.
The broker reports that the impact of the coronavirus is limited for Enel who said it was confident of completing the plan for the implementation of 14.1 GW of renewable capacity by 2022.
According to Bernstein, the group is a major player in a renewable energy market which will record a compound annual average rate of 11% in the next decade.
Credit Suisse also likes Enel
Good news for Enel also comes from Credit Suisse which, like Bernstein, today confirmed the “outperform” recommendation, with a fair value increase from 7.4 to 7.8 euros.
The Swiss bank believes that the group led by Starace is the best positioned to guide the energy transaction in Europe thanks to its size, balance sheet, liquidity and flexibility of the projects.
Enel promoted by BofA-Merrill Lynch. Buy now: here’s why
In the meantime, the promotion of Bank of America-Merrill Lynch, which improved the “buy” rating, with a target price increased from 7.7 to 8 euros, also gave Enel support in Piazza Affari today.
The US bank believes that Enel has upside potential after recently underperforming its competitors in the renewable energy sector.
For analysts, the title remains attractive, indicating that a catalyst could be represented precisely by the stimuli in the renewable energy / infrastructure sector in our country and in Spain.