ENEL shares continue to struggle in a bullish stock market
There are two certainties on the Milanese price list right now. The first is that the Ftse Mib has been the best stock in the world since the beginning of the year, with an increase of 17.5%. The second is that ENEL is the stock with the highest capitalization in Piazza Affari. Yet the most important guest is missing from the Ftse Mib’s bullish banquet, which is ENEL. In fact, since the beginning of the year, the energy giant has only achieved an increase of just over 6%, ranking among the worst stocks in this first part of 2023. And to think that the annual start of the stock was lightning-fast with an increase of 9% at the end of the first five sessions of 2023.
Because of these difficulties, even the utilities sector, dominated by ENEL, is among the worst in the Ftse Mib. The important divestment plan in Latin America to reduce the debt-to-equity ratio was also useless. What to do for the next few weeks?
The most important guest is missing from the Ftse Mib bullish banquet: the indications of the graphic analysis
The title IS IN THE (MIL:ENE) closed the session of 16 February at €5.374, down by 0.24% compared to the previous closing.
The difficulties of the stock are also evident from sessions such as that of 16 February where, against an index that gains more than 1%, it closes down by 0.24%.
At the moment, as can be seen from the graph, the situation is very complicated as the prices are practically at a standstill. Before undertaking any operation, therefore, it may be advisable to wait for the break of either the maximum or the minimum that the prices have marked during this lateral phase. These levels pass through €5.257 and €5.525.
Flat calm on ENEL which shows no signs of reversing upwards – projectionsdiborsa.it
The stock seen through its fundamentals
Whichever indicator is usedthe analysis through market multiples returns a highly overrated title. Even the fair value, calculated using the discounted cash flow method, returns an overvalued security.
Only analyststhrough their recommendations, are positive about the future of ENEL. The average target pricein fact, expresses a over 30% underestimation. However, we must be cautious. In fact, there is no convergence of views between the various recommendations given that the dispersion is greater than 20%.
