On Thursday, UBS analyst Christopher Leonard initiated coverage on Prysmian SpA (BIT:PRY:IM) (OTC: PRYMY), a leading manufacturer of cables and systems for energy and telecommunications, with a Neutral rating and a price target of EUR 70.00. Leonard’s assessment comes as Prysmian has shown robust EBITDA growth over its electrification peers during the period from 2022 to 2024.
Leonard’s commentary focused on the company’s financial performance and future prospects. He noted that with the market consensus estimating Prysmian’s EBITDA to reach EUR 2.9 billion by 2028, attention is likely to shift towards the company’s upcoming Capital Markets Day in March. Investors are anticipating whether Prysmian will introduce a new financial target to succeed its previous goal of achieving EUR 2 billion EBITDA by 2027.
Despite Prysmian’s strong performance, Leonard expressed a conservative stance on the potential for significant financial upgrades. He highlighted that UBS’s estimates are 6% below the consensus for the company’s 2027 EBITDA and 3% lower for 2028. This caution is attributed to several factors, including the possibility of reaching peak margins in the Grid sector, the risk of delays in Transmission capacity, and a reset in the margins of Encore, Prysmian’s North American subsidiary.
The analyst also remarked on Prysmian’s valuation, suggesting that it appears fair at the current levels. Additionally, he mentioned that the possibility of Prysmian pursuing a dual listing in the United States has been well-anticipated by the market, indicating that this potential move has already been factored into the company’s stock price.
Prysmian’s stock price and market performance will continue to be closely monitored by investors and analysts alike as the company approaches its Capital Markets Day and as the market evaluates its long-term financial targets and growth potential.
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