AlphaValue raises Italy's Hera to 'buy' on attractive valuation

Hera SpA

29/01/2026 08:26

** AlphaValue raises its rating for Italian utility firm Hera HRA.MI to "buy" from "add", after the recent decline in share price makes its valuation more attractive

** On January 21, Hera published its 2025-29 Business Plan and FY preliminary results slightly below expectations, causing the stock price to fall 3.2% during the day

** AlphaValue reiterates however its positive stance on the company, viewing the business plan as "solid", hinting at both organic growth and accretive M&A opportunities in "fragmented Italian market"

** It adds that the attractive dividend-per-share (DPS) proposal, seen to increase to 19 euro cents/SHR in 2029, is still considered conservative, especially given the unusually positive free cash flow expected throughout next years

** Its new PT of EUR 5.46 indicates an upside of 35.1% relative to last close

** Out of 6 analysts that cover Hera, four rate the stock "strong buy" or "buy,"​ two rate "hold" and no analysts rate the stock "strong sell" or "sell" - LSEG data

 (Reporting by Mirko Miorelli)

 ((Mirko.miorelli@thomsonreuters.com))