Goldman Sachs has recently included Enel (ENLAY, Financial) in its European Conviction List, reflecting a positive outlook for the company. This decision comes as a result of anticipated rises in investments within the European power sector, along with an improved regulatory environment, particularly following power outages in Spain. The move signifies growing confidence in Enel's strategic positioning and potential for future growth. Investors are advised to consider these factors when evaluating their investment choices in the energy sector.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Enel SpA (ENLAY, Financial) is $8.69 with a high estimate of $8.69 and a low estimate of $8.69. The average target implies an downside of 5.13% from the current price of $9.16. More detailed estimate data can be found on the Enel SpA (ENLAY) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Enel SpA's (ENLAY, Financial) average brokerage recommendation is currently 1.0, indicating "Buy" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
ENLAY Key Business Developments
Release Date: May 08, 2025
- Stock Performance: Up by 33% over the past two years.
- Dividends Paid: More than EUR9 billion.
- Total Shareholder Return (TSR): 52%.
- EBITDA: Approximately EUR6 billion in Q1, up by EUR100 million year-over-year on a like-for-like basis.
- Net Income: EUR2 billion, increasing by 2% on a like-for-like basis.
- Net Debt to EBITDA Ratio: Decreased to 2.5 times from 2.7 times last year.
- Grids EBITDA: Reached almost EUR2.2 billion, increasing by 4%.
- Integrated Business EBITDA: Stood at EUR3.8 billion, with renewables increasing by EUR100 million year-over-year.
- Non-Emitting Capacity: 70 gigawatts, resulting in 1 terawatt-hour growth of CO2-free generation.
- Free Cash Flow (FFO): EUR4.5 billion, adjusted for payable changes and one-offs.
- Dividends Paid in Q1: EUR2.5 billion.
- Debt: Approximately EUR56 billion, almost in line with year-end 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Enel SpA (ENLAY, Financial) reported a 33% increase in stock performance and a total shareholder return (TSR) of 52%.
- The company achieved its highest quarterly results ever, with EBITDA and net income both up by 2% year-over-year.
- Enel SpA (ENLAY) has secured 90% of its EBITDA over the planned period, reducing exposure to macroeconomic volatility.
- The company has optimized its capital structure, making it financially stronger and ready to capture value-creating opportunities.
- Enel SpA (ENLAY) has a strong focus on sustainability, with almost 70 gigawatts of emission-free capacity, supporting both financial and environmental goals.
Negative Points
- The performance in Latin America was flat year-on-year, affected by currency devaluation, particularly the Brazilian real.
- Retail prices in Italy are 30% to 40% lower than last year, impacting the company's revenue.
- The company faces a competitive environment in European markets, with increasing competition from new players.
- Enel SpA (ENLAY) has limited exposure to the US market, with only 5% of its investment allocated there, potentially missing out on opportunities.
- The company's renewable energy deployment is lagging behind schedule, with a focus on brownfield opportunities instead.
