The Stock Exchange does not rest over the appointments of state-owned companies
Business Square look carefully at the waltz of the armchairs that will lead to the changing of the guard a Leonardo and Enel. These are the most important appointments among the large public subsidiaries and also the most contested. Of course there have been profound revolutions elsewhere too (Terna and Enav for example) but obviously the weight is not comparable.
In the other heavyweights (Eni, Poste. Mps) the changes have not affected the managing director. On the other hand, Enel (Scaroni as president, Flavio Cattaneo as CEO) and Leonardo (Ambassador Stefano Pontecorvo as president, former Minister Cingolani as CEO) saw a reversal that wiped out previous advice.
The index touches 28 thousand points and goes down
The government’s choices have not left Piazza Affari indifferent. From the day of the appointments the index, which had reached 28,000, began to fall. And since then he hasn’t been able to rest. Technical analysts explain that the rebound as the 28,000 mark is approaching is now part of the liturgy of Piazza Affari. The record has stood for fifteen years and all attacks have been repelled. Fundamental analysis experts explain that the escalation of the crisis in US regional banks has strongly conditioned Piazza Affari where branches and policies have a very strong weight.
Be that as it may, the fact remains: since the nomination frenzy started in mid-April, the index has begun to drop. The most ruinous fall is that of Leonardo. The stock has lost about 9% since the changing of the guard announcement. But above all it lost the momentum of the first three months of the year which had led to growth close to 50%. The race stopped at 11.9 euros reached on 17 April. A couple of days after the appointments announced by the government.
Analysts are trying in every way to reinvigorate the quotations but so far without much success. Equity Sim confirms the BUY recommendation and the TP at €14. Moody’s improved its debt rating from “Ba1” to “Baa3”. At the same time, the rating outlook for the coming quarters was changed from “positive” to “stable”. Akros confirms the BUY recommendation with TP at €16 The share, however, does not move and now, according to the technical analysis, it could go down to €9.5.
Enel hit its year high on April 28
Less jagged the path of Enel which reached a yearly high of €6.25 on 28 April. Since then the quotation has bivouaced on those levels without pushing or falling. It is no coincidence that compared to mid-April it recorded an improvement of about 3% while the index fell. Again, analysts remain hopeful: Equity Sim raised the TP by 5% to €6.9. Jefferies is BUY and the TP at €7. Goldman Sachs keeps Enel in its Conviction Buy List with TP rising from €7.15 to €7.2. Kepler Cheuvreux raised the TP from €7.2 to €8.1, confirming the BUY recommendation. For analysts, the quarterly accounts are positive and increase visibility on the objectives for the whole of 2023. Lots of bets for Scaroni and Cattaneo.