Citigroup lowers Enel Green Power target to EUR 1.55, keeps "sell" rating

Oct 21, 2011 - Citigroup has revised down its share price target on Italy's Enel Green Power (BIT:EGPW) to EUR 1.55 from EUR 1.60, keeping the "sell" stock recommendation.
Following new estimates on Italian energy prices, the US bank cut its earnings per share (EPS) forecasts by an average 8% for 2012-2013. The 2011 and 2012 EPS projections were lowered to EUR 0.09 from EUR 0.10 expected earlier.
Citigroup also cut its rating on Enel Green Power's parent company Enel SpA (BIT:ENEL) to "sell" from "hold", saying the power giant would hardly achieve its ambitious 2013 earnings before interest, tax, depreciation and amortisation (EBITDA) target of EUR 18.5 billion (USD 25.485bn). The US bank also lowered the share price target to EUR 2.80 from EUR 3.50.
Enel's EBITDA target of EUR 18.5 billion in 2013, compared with Citigroup's EUR-16.5-billion estimate, seems difficult to reach given the pressure from the gas and generation competition, lower international growth and weak Latin American currencies, the US broker commented.
Enel Green Power had lost 0.90% to EUR 1.656 and Enel was up 0.06% to EUR 3.392 at 1415 CET on the Milan market on Friday.
(EUR 1 = USD 1.378)

Choose your newsletter by Renewables Now. Join for free!