Eni: Barclays sees 'more value elsewhere'
(CercleFinance.com) - Barclays maintains its "equal weight" rating on the Eni stock, with a target price of 19 euros, saying that the Italian energy group is "clearly benefiting" from higher oil prices.
In a research note, the broker notes that the company delivered strong growth in both earnings and cash flow over the past quarter, leading to a "meaningful reduction in leverage."
"However, the downstream performance was weaker than expected," BarCap pointed out in its report.
Going forward, the broker expects Eni to continue to deliver strong upstream earnings and cash flow at current oil price levels. However, with only 16% implicit upside potential, it sees "more value elsewhere in the sector."
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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.
In a research note, the broker notes that the company delivered strong growth in both earnings and cash flow over the past quarter, leading to a "meaningful reduction in leverage."
"However, the downstream performance was weaker than expected," BarCap pointed out in its report.
Going forward, the broker expects Eni to continue to deliver strong upstream earnings and cash flow at current oil price levels. However, with only 16% implicit upside potential, it sees "more value elsewhere in the sector."
Copyright (c) 2018 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.