Eni: Jefferies upgrades to 'buy'

(CercleFinance.com) - On Monday Jefferies upgraded its rating on Eni shares from "hold" to "buy," adopting a higher target price of 13.
3 euros (vs. 9.1 euros).

In report on the oil sector, the US broker says that it has raised its forecast for Brent crude oil, which it now expects to average around 60 dollars over the period 2021/2024.

However, Jefferies points out that Eni's shareholder remuneration policy is linked to oil prices: above 60 dollars a barrel, the Italian group pays a dividend of 0.75 euro per share, the highest in its sector.

The broker adds that Eni's biofuels business is also a strong "low-carbon" asset that could be spun off, which - based on Neste's valuation multiples - could result in a significant increase in the share price.

However, Eni shares, which were also upgraded by Credit Suisse this morning, were down 0.2% on Monday afternoon in Milan, underperforming the index by about 0.5%.


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