Quantifying Fiber Impacts and Updating Numbers Post 1Q26

Goldman Sachs reiterates its Buy rating on Prysmian and raises the price target to €161, citing structural fiber price surges and data center growth as catalysts for 28% Digital Solutions margins by 2028.

Key Takeaways

• 1.Price Target for Prysmian (PRY.MI) raised to €161 from €126 while maintaining a Buy rating.
• 2.Digital Solutions EBITDA margins are projected to reach ~28% by 2028, driven by fiber price surges and data center demand.
• 3.Prysmian is vertically integrated, producing 2/3 of its own fiber, which provides a significant hedge against rising raw material costs.

Table of Contents

• Company Profile
• Single Stock Toolkit
• Bottom-up Digital Solutions forecasting
• Deep diving into Prysmian's strategic positioning in Digital Solutions
• Fiber Market Dynamics
• Pricing Surges
• Capacity expansion announcements
• Bottom-up deep dive on P&L impacts in Digital Solutions
• Caveats of the analysis
• Revisiting the competitive landscape in the context of Prysmian's renewed focus on M&A
• Prysmian vs. Multi-Industry
• Valuation and Key Risks
• Appendix A: Teach in on the Fiber Optic Production
• Appendix B - Competitive Landscape for Cables

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