Investing.com -- Enel's (ETR:ENEI) updated 2025-2027 guidance posted a mixed yet cautiously optimistic outlook.
The utility giant projects an EBITDA range of €22.9-23.1 billion for FY25 and €24.1-24.5 billion for FY27, marking an approximate 8.2% growth midpoint from 2024 to 2027.
While net income guidance indicates modest increases, the shift in dividend policy is notable—raising the dividend per share floor from €0.43 to €0.46 for the FY25-27 period, reflecting a potential yield of 6.8%.
Key investment areas flagged an intensified focus on regulated grids, which will account for 60% of the revised gross capital expenditure of €43.1 billion—up 20% from the prior plan.
Renewables also remain central, aiming for a robust IRR spread of 300 basis points above the weighted average cost of capital (WACC).
Despite its positive growth trajectory, Enel is managing an anticipated rise in net debt, forecasting a net debt-to-EBITDA ratio of 2.5x by FY27, slightly up from 2.3-2.4x in FY26.
These figures align with the company's broader strategy of balancing grid expansion with selective renewable investments.
Analysts at Jefferies remain upbeat, maintaining a "buy" rating and boosting their price target by 12% to €9.00, a 33% upside from current levels.
Jefferies notes that while consensus estimates align closely with Enel’s targets, potential risks include regulatory uncertainties and fluctuating power prices.