Opinions
The Panic-Proof Portfolio (Stockchase Research)
ENI SPA
E-N
TOP PICK
Aug 15, 2023
Stock price when the opinion was issued
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E is an integrated oil and gas company with production over 1.6 million barrels per day operating in Italy. It trades under book value, boasts a ROE of 27%, and PE of 5. Cash reserves are growing while debt is aggressively retired and shared bought back. We recommend setting a stop loss at $24, looking to achieve $34.50 — upside potential over 20%. Yield 2.3%
(Analysts’ price target is $34.65)We reiterate E as a TOP PICK. Venezuela will grant the company an LNG export license, which will be supported by the 1.3 bcfd Cardon IV project. It trades at 5x earnings, under book value and supports a 24% ROE. Cash reserves are rising, while the company aggressively retires debt and buys back shares. We continue to recommend a stop-loss at $24, looking to achieve $34 -- upside potential of 20%. Yield 2.2%
(Analysts’ price target is $34.29)Our PAST TOP PICK with E has triggered its stop at $30. To remain disciplined, we recommend covering the position at this time. When combined with our previous recommendations, this will result in a net investment gain of 4%.
Over the quarter, commodity price valuations were down over 30% from a year ago, but the company managed to beat operating profit expectations by over 50%. It trades at 6x earnings, under book value and supports a ROE of 17%. We recommend trailing up the stop (from $26.00) to $27.50, looking to achieve $36.00 -- upside potential of 18%. Yield 2.9%
(Analysts’ price target is $36.13)