E - Eni SpA stock downgraded by RBC on valuation

• RBC Capital Markets lowered its rating on Eni ( NYSE: E ) Wednesday, citing worse risk/reward.
• RBC analyst Biraj Borkhataria downgraded Eni to Sector Perform from Outperform.
• Eni ( E ) shares fell 1% in premarket trading.
• "Our previous positive stance on Eni centered around our bullish commodity price deck, as well as Eni’s ability to unlock value through a spinoff of its low carbon segment via IPO, a move we saw as a ‘Test Case’ for the rest of the sector," Borkhataria wrote in a note.
• "On the rare occasion that a stock rallies through our PT (14 euros), it is an opportune time to reflect and reassess the investment case," he said. "Going forward, we believe the risk-reward appears balanced from here and we downgrade to Sector Perform."
• "This year, relative exposures to Russia, issues around windfall taxes, and geopolitics have overwhelmed investment cases for many companies, including Eni, which has ultimately led to this relationship breaking down," he added. "Eni has rallied in recent weeks but revisions suggest it should have performed even better this year."
• See how SA authors and Quant Rating view the stock .

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