Enel: shares down after downgrade

(CercleFinance.com) - Enel shares are down 0.
1% at 6.7 euros on Tuesday after a broker downgraded the stock due to concerns about its valuation.

Berenberg analysts downgraded their rating on the Italian utility group from "buy" to "hold" while raising their target price from 6.3 euros to 6.7 euros.

The analysts point out that they originally turned buyers on Enel in September 2015, backing the new management team to deliver a turnaround at the group.

"This story is now well entrenched, the German broker says, with management delivering on the transformation of the previously struggling utility giant."

Berenberg says it now sees much better value elsewhere, for example at Fortum, Verbund and RWE.

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