BofA Lifts PT on Eni S.p.A. (E) to EUR 21 From EUR 18.50 – Here’s Why

Core Viewpoint - Eni S.p.A. (NYSE:E) is identified as one of the most undervalued energy stocks, with a price target increase from EUR 18.50 to EUR 21 by BofA, maintaining a Neutral rating on the shares [1]. Financial Performance - In fiscal Q4 2025, Eni reported an adjusted net income of €1.20 billion, reflecting a 35% year-over-year increase [2]. - The company's cash flow from operations (CFFO) for fiscal Q4 reached €3 billion, up 4% year-over-year, with management indicating that cash flow is significantly ahead of plan [2]. - Eni's gearing ratio is reported at a historically low level of 14%, attributed to active portfolio management [2]. Operational Highlights - Eni signed a binding agreement with Petronas to establish a jointly-controlled exploration and production satellite in Indonesia/Malaysia, combining two significant gas asset portfolios [3]. - The initial production level from this agreement is expected to exceed 300 Kboe/d, with a rapid ramp-up anticipated to a sustainable level of over 500 Kboe/d [3]. Business Segments - Eni operates in various segments including Exploration and Production, Global Gas and LNG Portfolio, Refining & Marketing and Chemicals, Power & Renewables, and Corporate and Other Activities [4].