ENLAY - Enel: Attractive After Evaporation Of 'Green Premium'

• Enel posted mixed results in 2022 but doubled down on the energy transition.
• Capex is increased to a level of €170Bn to expand the divisions Green Power and Networks, which drive earnings.
• On the downside, net debt increased substantially and the stock price has trended lower since the beginning of 2021.
• The lower stock price resulted in a P/E ratio which is more aligned with industry peers, and the forward dividend yield increased to 7.5%.
• Given the inflationary environment and the outlook shared by the management, this company presents an opportunity at a price below US$6 (€5.75).

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