Eni is buoyed by improved guidance and better-than-expected figures
Contributing to the rise in the Six-Legged Dog’s share price are also an increase in share buybacks and the prospect of a special dividend, as well as rises in crude oil prices
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(Il Sole 24 Ore Radiocor) - Better-than-expected quarterly figures, improved guidance, an increase in the share buyback programme and the prospect of a special dividend are driving the share price higher Eni. Buying is also being supported by further rises in the price of crude oil, which has resumed its upward trend following fresh cross-border attacks in the Middle East overnight, fuelling fears over oil supplies.
But the main catalyst for buying comes from the second-quarter figures. In a note this morning, Barclays analysts highlighted that profit and cash generation exceeded expectations by more than 10 per cent, whilst the company has revised its 2026 cash flow guidance upwards, benefiting from more favourable commodity prices and a solid operational performance. “The higher cash flow has enabled a 20 per cent increase in the share buyback programme and leaves open the possibility of a special dividend in the fourth quarter,” they added. Barclays has an ‘overweight’ rating on the share, with a target price of €28.50. “The results are very strong and exceed expectations in terms of both profits and cash flow,” say analysts at Equita (buy with a target price of €27.50).
Experts at Banca Akros (buy, with a target price of 26 euros) echo this view: “The results were positive and exceeded expectations, with operating cash flow around 15 per cent above the consensus”, and they highlight that the company has raised its adjusted operating cash flow (cash flow from operations, i.e. cash flow generated by operating activities) from €13.8 billion to €15 billion; increased its share buyback programme from €2.8 billion to €3.4 billion; and is open to the possibility of a special dividend thanks to the improved refining margins outlook.
