Prysmian in light, Citi sees solid margins in the short term

(Il Sole 24 Ore Radiocor) - Prysmian stands out in Piazza Affari (FTSE MIB ) thanks to the positive verdict of Citi analysts who, "despite the sharp drop in copper prices on the Comex" in August, see solid margins for the company in September and in the short term in general.

In detail, Citi has raised its estimates on adjusted earnings per share for 2025/2026 by 8/7% and revised the target price to EUR 91, from the previous EUR 79. Although the price of copper fell by 19% on the Comex at the end of July, due to "the decision not to impose tariffs on refined copper", the experts explain, "prices seem to be rather stable". On the contrary, competitor listings in the US suggest "a slight growth in copper cable selling prices", which could also support Prysmian's margins in the short term.

In addition, profits at US subsidiary Encore (with margins seen at 22.5% in Q3 2025 and 19% in Q4) should support 'a solid rise in consensus EBITDA in the coming months. Added to all this is the "strength of fibre", which can be "an advantage" Citi expects in fact "an increase in orders in the transmission sector: positive data on fibre shipments in Japan," the bank explains, "indicate a favourable environment for digital solutions, which can be more durable thanks to continuous investment in artificial intelligence", as shown by recent estimates from Oracle. Also "the final order for Marinus Link and European tenders may provide additional volumes" for Prysmian, add the experts, who however identify as the "main driver" for higher margins and volumes the Electrification division. "With each of the divisions currently in an optimal phase, we believe that theshares may see further upside, concludes Citi.