On Thursday, Berenberg made a slight adjustment to the price target for Prysmian SpA (PRY:IM) (OTC: PRYMY), increasing it to EUR76.00 from EUR75.00, while reaffirming a Buy rating on the stock.
The adjustment follows the company's first-half financial results for 2024, released on August 1, which reported an adjusted EBITDA of EUR869 million. This figure was in close alignment with the consensus estimate of EUR864 million.
The company's net profit for the first half of the year exceeded Berenberg's expectations by approximately 4%, attributed to a lower effective income tax rate. Despite the positive outcome, Prysmian's updated guidance for the full year 2024 did not meet the analyst's initial expectations.
The new forecast for adjusted EBITDA stands at EUR1,900 million to EUR1,950 million, which is consistent with the consensus estimate of EUR1,915 million but falls short of the higher investor expectations prior to the release of the H1 2024 results.
Berenberg suggests that their anticipation of an increase in guidance was premature by about three months. The firm now projects a potential uplift in the company's guidance to be announced with the third-quarter results at the end of October. Prysmian's financial performance and subsequent guidance update have been key factors influencing Berenberg's price target revision.
In other recent news, Prysmian SpA has been under the spotlight due to its recent performance and strategic developments. Citi has increased its price target for Prysmian shares to €69.00, citing improved earnings per share (EPS) forecast and cash flow expectations for the years 2024-2026. The firm also highlighted Prysmian's intact mid-term story and reasonable valuation.
Additionally, JPMorgan (NYSE:JPM) resumed coverage on Prysmian shares with an Overweight rating, significantly raising its price target to EUR71.00. This was influenced by the company's strategic moves, including the acquisition of Encore Wire (NASDAQ:WIRE) and share buybacks, prompting JPMorgan to increase its EPS forecasts for Prysmian.
Furthermore, Barclays (LON:BARC) has also expressed confidence in Prysmian's growth and profitability prospects. The firm increased its share price target from EUR58.00 to EUR63.00, highlighting Prysmian's robust margin and risk profile, particularly in high-voltage capacities.
These developments underline Prysmian's strong positioning in the market, as demonstrated by the positive outlooks from Citi, JPMorgan, and Barclays.
InvestingPro Insights
Recent data from InvestingPro indicates that Prysmian SpA (PRY:IM) (OTC: PRYMY) has a market capitalization of $18.39 billion and is trading at a price-to-earnings (P/E) ratio of 30.5. This reflects a high earnings multiple, which aligns with Berenberg's positive outlook and the company's strong financial performance. The company's revenue for the last twelve months as of Q2 2024 stands at $16.29 billion, with a gross profit margin of 37.07%, underscoring its robust position in the Electrical Equipment industry.
InvestingPro Tips highlight that Prysmian has not only raised its dividend for 4 consecutive years but has also maintained dividend payments for 17 consecutive years, demonstrating a consistent return to shareholders. This commitment to dividends may be particularly attractive to income-focused investors. Furthermore, Prysmian has experienced a significant price uptick over the last six months, with a 41.29% total return, which suggests strong market confidence in the company's growth prospects.
For investors seeking a deeper analysis, there are additional InvestingPro Tips available, including insights on the company's debt levels, profitability predictions for the year, and historical performance metrics. These tips can be found by visiting InvestingPro for Prysmian SpA.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.