Berenberg raised its price target and forecasts for Eni (ENI.MI) amid expectations of "significant" growth as the Italian energy group picks up the pace of its satellite strategy to optimize its portfolio.
"Eni has performed very well over the past 12 months, with the stock up nearly 60% over the period, outperforming most peers. In our view, this has been driven by several factors, including strong exploration success, with a reserve replacement ratio above 150% through 2024/25, which has underpinned a strong production growth profile through 2030. In addition, the satellite model has started to deliver meaningful growth through Azule and Searah, and the company has benefited from material divestments, which have helped fund a substantially larger buyback in 2026," analysts wrote in a note published Thursday. "We see attractive FCF generation on our estimates, though this relies in part on the delivery of the satellites, and remains sensitive to oil and European gas prices."
As such, the price target was changed to 25.50 euros from 22 euros, with an unchanged hold recommendation on the stock.
The research firm also increased its 2026 and 2027 adjusted EPS estimates by 6.5% and 11.3%, respectively, on the back of higher assumptions for exploration and production and downstream results. For 2028, the adjusted EPS forecast was lifted by 11.8%.