Prysmian runs, brokers positive on AI-related prospects

(Il Sole 24 Ore Radiocor) - The positive outlook, also linked to artificial intelligence and "certified" by analysts at Bank of America and Jefferies, boosted the stock of Prysmian , which ranks among the best of the FTSE MIB. Although the stock has performed very well, up 77.7% so far in 2026 and 171% over the past 12 months, and "its valuation has entered a new range this year, we still see very attractive growth potential in the medium term, as well as upside margins over consensus," say analysts at Jefferies, who confirmed the 'buy' rating and raised the price target from €117 to €176 per share, pointing out that the company 'is committed to building infrastructure for artificial intelligence, in the optical cable sector, which will support earnings until 2030'.

Although Q1 Ebitda was in line with forecasts, management spoke of a better-than-expected start to the year, with higher organic growth, which allows it to target the high end of the full-year forecast. "The Transmission segment had a slower start, but Ebitda growth is expected to accelerate significantly in the coming quarters, with further room for margin improvement. Furthermore, the margin recovery in Power Grid was limited in the first quarter, but should become more evident in the second and third quarters,' Jefferies adds. Also in the same vein were the experts from Bank of America, who confirmed the 'buy' rating, but upgraded the target price to EUR 175 from the previous EUR 148. "The growing demand related to data centres for artificial intelligence and hyperscalers should sustain high fibre prices for several years," say the analysts, who see "a strong growth potential for the Digital Solutions division thanks to the revision of telecom contracts and possible deals with AI-related hyperscalers."