On Friday, Citi reaffirmed its Buy rating on Enel (BIT:ENEI) SpA (ENEL:IM) (OTC: ENLAY) stock with a steady price target of EUR7.40, ahead of the company's upcoming third-quarter and nine-month results announcement scheduled for November 6, 2024. The firm anticipates that Enel will present another robust set of financials, which could precede an upgraded full-year guidance.
The forecast by Citi suggests Enel's EBITDA (earnings before interest, taxes, depreciation, and amortization) will rise by 5% to €17.3 billion, while net income is expected to increase by 14% year-over-year. This performance is attributed to strong results from the company's renewable energy segment and retail operations.
Citi also speculates that Enel may revise its full-year EBITDA guidance, which currently stands between €22.1 billion and €22.8 billion, and net income (NI) guidance of €6.6 billion to €6.8 billion, to potentially slightly higher figures of €22.6 billion EBITDA and €6.9 billion NI.
The report from Citi indicates that Enel might choose to announce this guidance upgrade during its Capital Markets Day (CMD) on November 18, 2024. However, the CMD is expected to primarily focus on the visibility of future dividends and strategies for capital deployment.
Citi's positive outlook on Enel is based on the company's performance and potential for upward revision in its financial guidance. The firm's analysis points to a solid upcoming financial report from Enel, which may further strengthen investor confidence in the company's growth trajectory and financial health.
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