Enel Under-Appreciated Growth

Goldman Sachs reiterates its Buy rating on Enel SpA with a €12 target price, citing under-appreciated organic growth in its power grid and renewables segments. The company is set for a 7% EPS CAGR through 2030 while trading at a significant discount to sector peers.

Key Takeaways

• 1.Enel's Regulatory Asset Base (RAB) in power distribution is expected to deliver high single-digit growth pa, which is currently overlooked by the market.
• 2.Renewable development capabilities are ramping up with 6 GW under construction or nearing 'ready to build' and 15 GW of US bids in motion.
• 3.The company is positively geared to a reopening of the Strait of Hormuz through lower sovereign yields and reduced regulatory intervention risk.

Table of Contents

• Five growth drivers, overlooked by the street
• Enel: Geared to a reopening scenario
• A transformation story, at a valuation discount
• Financials, valuation and key risks
• Estimate changes
• Financials
• Valuation
• Key risks

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