Morningstar initiates coverage on Italy's Prysmian; flags shares are overvalued

Prysmian SpA

10/03/2026 13:13

** Morningstar initiates coverage of Italy's Prysmian PRY.MI with a fair value of 87 euros ($101.31) and a "high" uncertainty rating as it says the cable maker's shares are overvalued

** Fair value represents 10.3% downside to co's previous close

** Prysmian's backlog-driven earnings visibility conceals cyclical execution risk, Morningstar says

** Group is "structurally advantaged" to benefit from global growth of electricity demand, expected to roughly double by 2050, it notes

** However, the execution of "large, complex projects" remains the central risk, it adds

** Prysmian has recently expanded its offering in the electrification and digital solutions segments, which Morningstar says lack "durable" competitive advantages and face more cyclical end markets

** The stock has gained 17.4% YTD

** Out of 21 analysts that cover Prysmian, 10 rate the stock "strong buy" or "buy," ​nine rate "hold" and two​ rate "strong sell" or "sell" - LSEG data

($1 = 0.8587 euros)

(Reporting by Philippe Leroy Beaulieu in Gdansk)

((philippe.leroybeaulieu@thomsonreuters.com))