Yesterday, Enel announced the sale of 90% of its stake in certain electricity distribution assets in Italy to A2A for €1.2 billion.

Following this announcement, UBS confirms its Buy recommendation on the stock, with an unchanged target of E7.55, representing a potential upside of 23%.

' The announced agreement implicitly includes 1.35 billion euros EV, a capital gain of 1.0 billion euros, a significant EV/RAB premium of 110 to 215%, a slight reduction of 0.04x in ND/EBITDA and no impact on EPS' says UBS.

Following the transaction, its subsidiary e-distribuzione will retain a 10% stake in NewCo's capital. The transaction is expected to close before the end of the year.

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