Enel: BofA upgrades its recommendation

(CercleFinance.com) - BofA Global Research has upgraded its recommendation on Enel to 'buy', with a target price raised to 8.
30 euros, believing that the Italian utility 'has the recipe to offer Europe's most attractive share price among integrated utilities'.

Improved earnings quality, a lower cost of capital and low risk can help reduce a discount of over 20% to the sector in terms of P/E (price/earnings) ratio", the broker believes.

BofA also considers that a solid balance sheet gives Enel the opportunity to increase its EPS to a level 4-8% above consensus, and maintains a dividend yield growing at over 7%.

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