Enel SpA

ENEL: XMIL (ITA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€7.50	Vgfp	Jkvtsnlbj

Enel Earnings: Top End of 2024 Guidance To Be Reached; Shares Undervalued

Tancrede Fulop

Jul 26, 2024

We confirm our EUR 7.5 fair value estimate after no-moat Enel released first-half results in line with the FactSet consensus and said it will reach the top end of its 2024 guidance. The firm also announced the sale of 49% of its Spanish portfolio of solar PV assets to Abu Dabi's Masdar. The disposal plan that drove a material deleveraging of the firm is now terminated. Further, management is confident to reach free cash flow neutrality this year that would enable it to pay a dividend based on a 70% payout involving a dividend of EUR 0.47 per share--above the EUR 0.43 floor and FactSet consensus' 0.45 and pointing to an attractive 7% yield that reflects the undervaluation of the shares.

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