Enel lost almost 2% in Milan as Jefferies downgraded its recommendation on the stock from 'buy' to 'hold', with a price target lowered from 7 to 6.5 euros, despite the presentation by the group's new management of a 'reasonable business plan with an attractive dividend'.

Although we consider that earnings in 2024 will be mainly protected by hedging, we are less convinced of outperformance beyond that, in a context of rapidly falling electricity prices in Europe", warns the broker.

Jefferies continues to like the Italian energy group's business model, but says it 'does not see any near-term catalyst likely to help the share price recover significantly'.


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