RBC Capital Markets revised its model for Eni (ENI.MI), tweaking its earnings forecasts after the Italian oil and gas company released its second-quarter results.
"We update our estimates following ENI's 2Q26 results, incorporating RBC's new price deck and adjusting for upgraded guidance. We expect the raised buyback to provide near term support for the shares, with the prospect for more announced with 3Q. We balance this against a growing valuation and underweight position in refining. We maintain our Sector Perform rating and EUR28.00 price target," according to a Wednesday note.
For the six months ended June 30, Eni reported total revenue of 42.73 billion euros, up from 36.40 billion euros a year ago. The company also boosted its full-year 2026 underlying oil and gas production growth guidance to 5% from the previous target of between 3% and 4%, and expanded its share buyback program for the year to 3.4 billion euros from 2.8 billion euros on an "improved" outlook.
Within this context, RBC revised its earnings projections, including net production and operational EPS, for full-year 2026 to 2028.
"Whilst ENI is seemingly firing on a number of upstream fronts, our preference remains for names in the sector with more exposure to refining margins," analysts added.