Eni: Société Générale upgrades to 'buy'.
(CercleFinance.com) - Analysts at Société Générale (SG) have now taken a more aggressive stance towards the share of the Italian oil-gas giant, Eni.
They have therefore upgraded their previous “hold” rating to “buy”. SG essentially believes that the market is not taking into account the "new Eni". Alongside its upgrade, SG analysts have raised their 12-month target price from 14.5 euros to 18 euros.
SG believes that the strategy implemented by Eni after the "shock" of 2014 - and the collapse in the price of oil, which has not yet recovered - is beginning to bear fruit. The main elements: the startup to production of new deposits Upstream (exploration-production), "giant discoveries," and a Downstream division (refining and distribution) that is deemed to be profitable and which generates cash. The report adds that "organic free cash flow yield exceeds the sector's."
SG finally concludes that, “Eni's (current) valuation reflects the past, a disappointing era of delayed mega projects, which it withdrew from in 2014.”
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
They have therefore upgraded their previous “hold” rating to “buy”. SG essentially believes that the market is not taking into account the "new Eni". Alongside its upgrade, SG analysts have raised their 12-month target price from 14.5 euros to 18 euros.
SG believes that the strategy implemented by Eni after the "shock" of 2014 - and the collapse in the price of oil, which has not yet recovered - is beginning to bear fruit. The main elements: the startup to production of new deposits Upstream (exploration-production), "giant discoveries," and a Downstream division (refining and distribution) that is deemed to be profitable and which generates cash. The report adds that "organic free cash flow yield exceeds the sector's."
SG finally concludes that, “Eni's (current) valuation reflects the past, a disappointing era of delayed mega projects, which it withdrew from in 2014.”
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.