Home Business ENI convinces analysts: double upgrade from Barclays which sees it as a leader in the energy transition, stock can score another + 30%

ENI convinces analysts: double upgrade from Barclays which sees it as a leader in the energy transition, stock can score another + 30%

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ENI moves into sustainable agriculture by entering the capital of BF and today also collects a double upgrade from Barclays. On the stock market, the stock immediately jumped up to over + 2% and then quickly retraced in mid-morning thanks to oil prices (Brent down 3% below $ 79) on the fears for economic growth dictated by a new wave of Covid infections in Europe.

Barclays ora dice overweight

From underweight to overweight. This is the upgrade signed today by Barclays on Eni, with the target price rising from 13 to 16 euros. The experts of the English bank underline how the company led by Descalzi has become a pivot in that leader in the energy transition sector and is intended to provide “competitive returns” to investors. Barclays sees a lot of potential in the short term and among catalysts he mentions the Capital Markets Day scheduled for next Monday 22 November, the proposed Eni retail and renewables IPO, and finally the possible Ipo Var Energi.

Among analysts, buy on the stock prevails

The new target price indicated by Barclays implies a potential upside of around 30% for ENI. Among the analysts monitored by Bloomberg, 60% say buy on ENI, 33.3% say hold and only 2 (6.7%) say sell. The average target price is € 13.92 with a potential return of almost 13%.

Since the beginning of the year, the ENI stock has recorded approximately + 47%, with a clear outperformance compared to the Euro Stoxx Oil & Gas which marks a + 19%.

Alliance in sustainable agriculture

A “wide-ranging agreement” which takes the form of a strategic alliance between BF (Bonifiche Ferraresi), Eni and Intesa Sanpaolo. The board of directors of BF has approved the creation of a joint equity joint venture with Eni for carrying out activities “of research, experimentation and analysis on oil plant seeds in order to be able to use them as feed-stock for Eni biorefineries“. The agreement also provides for the purchase by Eni of a minority stake in the share capital of Bonifiche Ferraresi Società Agricola. In particular, BF will sell and transfer to Eni, which will purchase, 393,750 Bonifiche Ferraresi shares, representing 5% of its share capital, against payment of a price of 20 million. The purchase allows BF to recognize a capital gain of approximately 6.7 million. The board of directors also approved the proposal to shareholders of a capital increase reserved for Intesa Sanpaolo with the same terms as that reserved for Eni: in particular, the board of directors proposes to the shareholders’ meeting to approve the issue of 6,201,550 BF shares equal to 3.32% of the share capital of BF to be offered to Intesa. The unit price is also in this case of 3,225 euros for a total value of approximately 20 million.

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“The board of directors believes that Intesa’s entry into the company’s capital may represent the first step in future agreements capable of creating value for the company and its stakeholders”, underlines the company in a note. Subject to the approval of the capital increase resolution by the shareholders of BF, Intesa has undertaken to subscribe the capital increase by January 31, 2022. Regarding the initiatives with Eni and Intesa: “Two great alliances that strengthen the strategic plan and industrial positioning of the Group. In addition to the significant endowment of capital, these partnerships open new markets, provide know-how and recognize BF’s leadership in the national agro-industrial sector ”, underlines Federico Vecchioni, CEO of BF.

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