Snam cut to 'hold' at Kepler as stock looks pricey after rally

Snam SpA

14/05/2026 08:35

** Kepler Cheuvreux downgrades Italian energy infrastructure firm Snam SRG.MI to "hold" from "buy" due to valuation concerns following a strong share price rally

** The brokerage raises its price target by 13% to 6.8 euros ($7.96) after updating its long-term model to reflect in-line first-quarter results and higher investment forecasts

** Kepler notes the stock has surged about 14% year-to-date and 29% over the last twelve months, prompting the rating change despite solid long-term prospects

** The broker says that "while we continue to like the long-term visibility of the regulated gas assets", it sees "limited upside" after recent gains

** Kepler adds Snam now trades at an estimated 25% to 22% premium to its enterprise value to regulated asset base ratio, more than double its historical average

** Out of 20 analysts that cover the Milan-based firm, seven rate the stock "strong buy" or "buy," ​nine "hold" and four "strong sell" or "sell" - LSEG data

($1 = 0.8538 euros)

 (Reporting by Romolo Tosiani)

 ((romolo.tosiani@tr.com))