The long wave of the new plan to 2024 continues to support the Enel stock, which is still among the best today with almost + 2% in the area of € 7.17. The plan, which focuses on renewables and electrification, has reduced the objectives compared to the previous plan (-4% expected EBITDA), confirming instead the dividend policy.
Shot after the plan, buy dominates among analysts
The sprint of the last two sessions is allowing Enel to leave the last position in the 2021 performance ranking among the titles of the Ftse Mib. The stock still shows a decidedly negative balance (-13.4%), but Saipem (-15%) and Nexi (-13.8%) are currently worse off.
Among the analysts monitored by Bloomberg, 80.6% say buy on ENEL, 13.8% say hold and only 3.4% say sell. The average target price is € 8.71 with a potential return of over + 20% compared to current levels.
The new 2022-24 goals substantially impacted with the Bloomberg consensus. Today, Intesa Sanpaolo analysts remark how the 2022-24 plan pushes investments upwards, supporting an expected growth of the green capacity from 54GW in 2021 to approximately 77GW in 2024, 18 billion euros (+ 12% compared to the previous Plan) and on greater investments in infrastructures and networks in Europe. “The new plan also focuses on the integration of the business of Renewables and Customers, which we do not exclude being a turning point in the generation of energy from long-term renewable sources”, asserts Intesa SP which has raised the rating from Add to Buy with target price at € 9.1 (from the previous € 9.7).
The opening of the CEO Francesco Starace to a also attracted the attention of investors possible spin-off and listing on the stock exchange of Enel X, the group company specializing in products and services in the field of energy transformation at a domestic and industrial level. “It could be a good choice,” said Enel’s number one cryptically.
Net Zero 10 years in advance
The largest blue chip in Piazza Affari by market cap has accelerated on the green investment front, anticipating the Net Zero target by 10 years (from 2050 to 2040). Enel intends mobilize a total of 210 billion euros between 2021 and 2030, of which 170 billion in direct investments (+ 6% compared to the previous plan). By the end of the decade, Enel expects to reach a total renewable capacity of around 154 GW, tripling its portfolio by 2020 and to promote the electrification of energy consumption, increasing the volumes of electricity sold by almost 30%.