ENI: Berenberg maintains 'buy' rating after stake in ADNOC
(CercleFinance.com) - Berenberg reinstates its "buy" rating on the Eni stock, along with its target price of 17.
6 euros, the day after the Italian oil giant announced taking a 20% stake in ADNOC Refining in Abu Dhabi.
"The acquisition improves the overall quality of Eni's downstream business, reflected in the new breakeven target margin for refining falling by 50% to USD1.5/bl, due to the transaction," the broker says.
However, Berenberg points out that it is difficult to assess the price of the deal, and therefore sees the announcement as "being broadly neutral for the stock in the short term, until greater clarity emerges on the impact for earnings".
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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.
6 euros, the day after the Italian oil giant announced taking a 20% stake in ADNOC Refining in Abu Dhabi.
"The acquisition improves the overall quality of Eni's downstream business, reflected in the new breakeven target margin for refining falling by 50% to USD1.5/bl, due to the transaction," the broker says.
However, Berenberg points out that it is difficult to assess the price of the deal, and therefore sees the announcement as "being broadly neutral for the stock in the short term, until greater clarity emerges on the impact for earnings".
Copyright (c) 2019 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.