Citigroup ups Italgas to 'buy', sees targets rising
BUZZ-Citigroup ups Italgas to 'buy', sees targets rising ** Citigroup ups Italgas IG.MI to "buy" from "neutral", expecting Europe's largest gas distributor to set higher 2031-2032 targets at its June 23 capital markets day
** Sees tender capital expenditure at €2 billion ($2.3 billion), up from the €1.5 billion communicated in October
** Forecasts savings from the integration of 2i Rete Gas at €300 million vs previously guided €180 million
** Says Italgas offers "sector-leading" growth, with EPS growth at ~10% vs the ~6% of peers
** Adds the stock still trades at a material discount, "leaving the risk-reward skewed decisively to the upside"
** Raises its TP by 16% to €11.6
** Of 15 analysts covering Italgas, six rate the stock "buy" and nine "hold" - LSEG data
($1 = 0.8662 euros)
(Reporting by Philippe Leroy Beaulieu in Gdansk)