Enel: stock rising on analyst's comments.

(CercleFinance.com) - Enel is up 1.
6% in javascript:mode='sauve';change_form='no';verif();Milan today, following comments from Société Générale, which has initiated its coverage of the Italian energy company with a "buy" rating and a 12-month target price of 5.60 euros, meaning upside potential of around 15%.

SG notes that the expected dividend for 2019, or 32 euro cents per share, provides a yield of 6.7%, "i.e. a discount of 27% relative to its sector". In terms of P/E, and taking into account management's expectations, Enel is trading at a discount of 18% relative to its peers.

According to SG analysts, the market has doubts "probably related to the group's exposure to Italy and LatAm" about its outlook for 2019, which it considers as unjustified, "With 70% of EBITDA growth in 2019 already secured".


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