Prysmian bounces back after the lukewarm reception to the US deal the day before

(Il Sole 24 Ore Radiocor) - Shares are on the rise Prysmian is trading higher on the Milan Stock Exchange, driven by theacquisition of the US firm Atkore, which had failed to inspire much enthusiasm among investors the day before. According to analysts at Deutsche Bank (who have a ‘Buy’ rating and a target price of 167 euros), with this deal the company ‘aims to apply a tried-and-tested model: acquiring a large-scale platform in the United States at a time of depressed margins and, subsequently, revitalising its profitability and accelerating its growth through an integrated commercial approach, operational improvements and stricter cost control, whilst expanding its offering in the data centre segment’.

According to experts , the deal enhances Prysmian’s profile in the United States and strengthens the case ‘for a secondary listing in New York, bringing the group closer to its goal of narrowing the valuation gap with its US and Asian competitors’. From a financial perspective, having revised the estimates for the individual divisions and factored in the effects of the acquisition from 2027 onwards, including the impact of the related financing, Deutsche Bank has raised its group EBITDA forecasts by 1 per cent for the 2026 financial year and, on average, by 12 per cent for the two-year period 2027–2028. In particular, according to the bank, Prysmian continues to deliver solid earnings growth, with several potential catalysts over the next 6–12 months, including further M&A transactions, new agreements with hyperscalers, a listing in New York and a possible upward revision of medium-term targets at the Capital Markets Day scheduled for the first half of 2027.

Positive assessments have also come from analysts at Equita (Buy rating and a target price of 178 euros), who have focused on the conference call held following the announcement of the deal. “Management,” the brokers state, “demonstrated strong conviction regarding the rationale for the acquisition, highlighting the high level of complementarity and the scope for significant synergies”. Furthermore, “it strengthens exposure to the structural trends of electrification and data centres in the US”. In light of Atkore’s fundamentals and “the first signs of operational improvement (Q3 2026, ending in June, with adjusted EBITDA up by around 5%, compared with the 30% decline recorded in the previous quarter), we believe that the price paid by Prysmian is reasonable, at around 18 times the adjusted 2026 P/E ratio and 11 times the adjusted EV/EBITDA ratio, even taking into account that profitability levels are close to a cyclical low’. The experts believe that ‘the transaction could generate value of around 1 billion, thanks mainly to Prysmian’s ability to realise the anticipated synergies by 2029 and to strengthen its competitive position in the US. These synergies appear realistic in light of the management’s proven track record in integrating acquisitions, as demonstrated most recently by the success of the Encore Wire transaction.”

Finally, according to Banca Akros, ‘Prysmian has confirmed that the transaction is strategically aimed at accelerating the group’s transformation from a mere cable manufacturer to a provider of a broader range of electrification solutions’, whilst maintaining strict financial discipline and preserving ‘parameters consistent with an investment-grade credit rating. The rating (neutral) and target price (€130) have been confirmed’.