MS ups Italy's A2A to 'overweight', shares hit highest since 2008

A2A

03/11/2025 11:10

** Morgan Stanley ups Italy's A2A A2.MI to "overweight" from "equal-weight" on opportunities offered by data centre development for the multi-utility

** Shares fail to start trading at open, and later rise over 7%, touching their highest since January 2008

** A2A's Northern Italy portfolio is a "geographic plus" should the Milan data centre region build out materialise, MS notes

** Its power generation, electricity distribution, water and district heating segments can also benefit, it adds

** MS raises its TP to 3.25 euros ($3.79) per share from 2.55 euros

** Factoring in data centre uplift, the "bull case" increases to 4 euros per share, it says

** Out of seven analysts that cover A2A, five rate the stock "strong buy" or "buy," two rate "hold" - data compiled by LSEG

** Including today's rise, the stock has gained 26.11% YTD.

($1 = 0.8575 euros)

(Reporting by Philippe Leroy Beaulieu in Gdansk)

((Philippe.leroybeaulieu@thomsonreuters.com))