We are maintaining our EUR 7.50 fair value estimate after Enel released final 2023 results, including EBITDA and net income that were in line with revised upward November guidance.
Enel's diversified profile and leadership positioning in renewables and networks offers solid and visible earnings growth.
Bears
The political appointment of Flavio Cattaneo as the new CEO in May 2023 reflects questioning governance and increases uncertainty regarding the future strategy.
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Enel is a diversified energy company domiciled in Italy. Operations are concentrated in Italy, Spain, and Latin America. The firm's primary activities are electric generation, electric networks, and gas and electricity marketing. Around 50% of the company's EBITDA is derived from its regulated networks. Taking into account power sold through power purchase agreements in Latin America, around 70% of EBITDA is quasi-regulated. Enel is a giant in global power generation with 86 gigawatts of capacity, of which 39 GW is renewables, including a large share of hydro.