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Enel: BofA upgrades stock

(CercleFinance.com) - BofA Global Research has upgraded Enel shares to 'buy', with a target price raised to E8.
30, believing that the Italian utility group has the recipe to offer Europe's most attractive share price in the integrated utilities sector.

Improved earnings quality, a lower cost of capital and low risk can help reduce a discount of over 20% to the sector in terms of P/E", the broker believes.

BofA also considers that a solid balance sheet gives Enel the opportunity to increase its EPS to 4%-8% above consensus, and maintains a dividend yield growing at over 7%.


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