Snam SpA
SRG: XMIL (ITA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
€8.80 | Kwdpy | Stzgxdb |
Snam: Initiating Coverage With No-Moat Rating and EUR 4.70 Fair Value Estimate; Shares Fairly Valued
We are initiating coverage of Snam with a no-moat rating and a EUR 4.70 fair value estimate, implying an enterprise value/EBITDA multiple of 11.2 times, EV/regulatory asset base of 1.3, and price/earnings of 13.1. While we like Snam’s regulated assets and believe they benefit from efficient scale, we assign a no-moat rating to the company as regulation limits pretax allowed returns to keep prices low for customers.