The last session of the week ended yesterday on the rise for Snam and Terna, which went up against the Ftse Mib, gaining ground for the second day in a row.
Snam and Terna go up before the weekend, but week is in the red
Snam posted the best performance among the blue chips, stopping at € 4.308, with a rise of 2.13% and over 10.8 million shares traded, just above the average of the last 30 days of approximately 10.7 millions of pieces.
More cautious but always positive Terna which ended yesterday at € 6.076, with an advantage of 1.17% and almost 5 million shares traded, against the monthly average of around 5.9 million pieces.
The rebound scored by the two utilities yesterday did not however prevent a negative weekly balance, given that Snam closed the eighth with a 6.93% fall, while Terna left 7.29% on the parterre compared to the close of the previous Friday.
Snam and Terna penalized by dividend detachment
The two stocks were penalized mainly by the negativity accused at the start of the week and linked to the dividend effect.
On Monday, Snam paid the 2020 coupon balance of 0.1426 euros, while Terna detached 0.1653 euros as the balance.
Which of these two utilities to focus on now after the dividend detachment?
Terna
Just yesterday, Mediobanca Securities analysts reiterated their cautious view of Terna, with a “neutral” recommendation and a target price of 6.2 euros.
Confirmation came after the company announced the launch of the buy-back plan starting next Monday, June 29, for a total outlay of up to 9.5 million euros and for a maximum of 1.77 million shares. ordinary, equal to 0.09% of the share capital.
Instead, Bernstein has bet on Terna, who recently reiterated the “outperform” rating with a target price revised upwards from 6.8 to 7.5 euro.
Analysts highlight that the impact of the global coronavirus crisis will not be very significant for Terna.
In fact, an estimated 10% drop in demand would have an effect of less than 1% on profits.
Berenberg believes that regulatory stability, long-term visibility and accelerated investment are not fully reflected in Terna’s current market assessment.
Snam
The same analysts from Berenberg are more cautious on Snam, for which just yesterday they reiterated the “hold” recommendation, with a target price adjusted upwards from 4.8 to 4.6 euros.
The broker explains that the cautious view on the stock is linked to the limited upside, but analysts emphasize Snam’s attractive return, the limited impact from the coronavirus, the stable growth of the Rab and international investments.
Equita SIM, which in recent days has reiterated the “hold” rating, with a target price of 4.6 euros, has not been unbalanced.
With reference to the agreement for the acquisition of 49% of Adnoc Gas Pipeline Assest, analysts speak of an operation that makes strategic sense to forge partnerships with a large operator in the sector worldwide.
Mediobanca’s strategy is different and, after the latest corporate news released by Snam, confirmed the “outperform” recommendation, with a fair value of 4.8 euros.
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