You probably know the Italian Eni energy company, but is this enough to make its stock worthwhile? What are the forecasts for 2023 according to analysts? Is it worth investing in Eni stocks now and/or in the coming months?
To answer these questions there is only one thing to do: dissect any technical information relating to its title. Precisely for this reason I have decided to prepare a small guide where I will analyze the target price, dividends, performance and quotations of the Eni share.
Let’s begin!
In This Article We Talk About:
- Eni: a few words about the company
- Eni share forecasts 2023: what to expect? Dividends and target price
- Is it worth investing in Eni stocks?
- How to buy Eni stocks?
Eni: a few words about the Italian energy company
The first thing to do is provide a brief overview of the company, in order to better analyze its business and understand how it has reacted over time to the various market needs.
Originally an acronym for Ente Nazionale Idrocarburi, ENI today represents one of the most important integrated energy companies in the world. In 1953 it was born as a public body by the Italian state, and is currently active in the exploration, refining, production and marketing of electricity, oil and gas and chemicals.
Today it is present in about 70 countries around the world, boasting thousands of employees. It is also called the six-legged dog, a name that derives from its historic logo.
ENI shares are listed on both the Milan Stock Exchange and the New York Stock Exchange (NYSE). The security was placed on the Borsa Italiana market in 1995.
Today’s capitalization is 50.34 billion euros.
The Italian State is the main shareholder of ENI, with the MEF owning over 157 million shares, corresponding to a 4.41% stake, and Cassa Depositi e Prestiti (controlled by the MEF for 82.77% of the share capital) which holds more than 935 million shares, equal to 26.21% of the total
Eni ( ENI ) stocks performance and price of today
Eni stock forecasts 2023: what to expect? Dividends and target price
And now let’s see the most important data for understanding whether to invest in Eni stocks.
Latest news
The Eni company closed its 2020 reporting a net loss of 8 billion euros, as well as an adjusted adjusted net result of minus 0.74 billion euros. Eni’s board also communicated that the net loss was 0.725 billion in the fourth quarter of 2020, while for the adjusted amount there was a return to profit of 66 million.
In 2021 the data were better than the consensus of analysts, thanks also to a much more favorable economic context compared to the previous year and an energy scenario with improved fundamentals. The revenues recorded amounted to 49.81 billion euros (+54% compared to the 32.36 billion obtained in 2020). Hydrocarbon production instead decreased by 4% to 1.66 million boe/day.
The adjusted net result was positive for 2.63 billion euros, unlike the red of 808 million recorded in 2020. The net result was also positive, registering 2.31 billion euros mainly thanks to the better operating performance and normalization of the tax rate.
In 2022 it started to go downhill. It had been about a year since the stock closed four consecutive weeks on the downside.
In September 2022, Plenitude, a 100% subsidiary of ENI announced that it had launched a new partnership with Infrastrutture for the development of solar and wind projects in Italy and Spain, through the acquisition of 65% of Hergo Renewables. It is a company that owns a portfolio of projects in the two countries with a total capacity of approximately 1.5 GW.
November was a good month for ENI: we point out 22 November in particular, when the stock gained 4.52%: following this result, analysts increased the target price on the oil giant.
Another relevant news concerns the purchase of treasury shares: in the sessions between 22 and 25 November 2022 ENI purchased 9.61 million treasury shares, at the weighted average price of 14.1339 euro per share, thus reaching 6.21% of the capital.
Furthermore, the Eni group is negotiating the acquisition of Neptune Energy, a company that produces gas for an amount equivalent to about 135,000 barrels of oil per day, from fields in Norway, the North Sea, Algeria, Germany, the Netherlands and Indonesia.
If the operation were to be completed, it would have a value of up to 6 billion dollars (5.9 billion euros); it could also become one of the most important acquisitions in the sector in recent years.
Eni: the target price
Let’s continue with our analysis: according to analysts, the target price fluctuates between €13.90 and €20, with an average price of €16.97.
The analysts’ best choice is to buy the shares, as the prospects appear to be good.
Obviously always remember that we are talking about uncertain data and forecasts. No one has a crystal ball and can tell you what to do for sure. Just having a strategy can help you understand how to move and not make mistakes when evaluating how to manage your portfolio.
Eni: dividends
And finally, here is the last piece of data that you as an investor might be interested in, namely the one linked to Eni dividends.
The latest available dividend (May 22, 2023) amounts to €0.22.
Is it worth investing in Eni shares?
Now that we have explored all the technical information that can be useful to investors, let’s see if it is worth buying Eni shares.
Personally I advise against buying a single share, as it would be a risky operation if carried out individually, and without including it within a diversified strategy.
Investing in stocks can be rewarding, but you need to be clear about what you’re doing. I do not recommend acting rashly and without due preparation: if you have never invested in shares and you are at the beginning of your research, I suggest you take a look at the guide to start investing in shares.
Where to buy Eni stocks?
However, if you want to buy shares but you don’t know how to do it practically, here I’ll explain which are the two channels you can use:
The traditional bank. In my experience, if you want to invest more than 3-4 thousand euros, your current account should be fine. On average, the most important Italian banks allow you to have a securities portfolio, the problem is that often the operations have a high online cost and you have to evaluate case by case if it is convenient for you;
An online platform. There are many platforms specialized in the purchase of shares and other financial instruments that are native digital and allow you to access the markets in a more intuitive and often cheaper way. There are platforms that allow you to buy shares even with just €50. For small investments, they are often preferable in terms of user experience and above all costs.
If you want to discover the best online platforms for investing independently, read the dedicated guide.
Additional helpful resources
We have briefly seen some forecasts on the Eni stock and on what the future of the company could be.
In any case, even if you have full confidence in the brand, always invest only amounts that you can afford to lose and that never exceed 2-3% of the money you want to invest.
Diversification and prudence are indispensable in a sector which, for better or worse, has risk as its constant. You know that my position is adamant on this aspect: take risks yes, but with intelligence.
