Barclays starts 'best-in-class' Prysmian with 'overweight'

Encore Wire

03/05/2024 09:18

** Barclays initiates the Italian cable producer Prysmian
 PRY.MI  with "overweight", deeming the company as the
"best-in-class" among its peers in terms of group revenue and
cash generation growth
    ** Prysmian's backlog shows that over the last 3 years
pricing for offshore wind projects has likely "more than
doubled", and "almost tripled" for interconnector projects,
potentially resulting in a spike in margins in the next 2-3
years, the brokerage notes
    ** Barclays adds its the backlog, at a record-high 18
billion euros ($19.31 billion) as of March 24, has lower U.S.
and developer exposure vs peers, while lessons learned from the
Western Link project "could help guide execution going forward"
    ** Prysmian's 3.9 bln deal to buy U.S. Encore Wire  WIRE.O 
could result in a faster FCF generation with CAGR at 20.9% over
the 2024-2027 period, the brokerage adds
    ** Out of 16 analysts covering Prysmian, ten rate it "strong
buy"/"buy", ​five "hold" and one "sell"
    
($1 = 0.9320 euros)

 (Reporting by Philippe Leroy Beaulieu)
 ((Philippe.leroybeaulieu@tr.com))