UBS ups Snam to 'buy' on valuation, sees regulation as main variable

Snam SpA

10/09/2026 10:49

** UBS upgrades Snam SRG.MI to "buy" from "neutral", citing the Italian gas grid operator's attractive valuation, while saying upside or downside risks for the stock would mainly be linked to regulation
** Snam's share price has "underperformed peers, the sector and the overall Italian market" over the past three months, the broker says
** Snam trades at about 15% discount to peers on price-to-earnings ratio, which UBS says is unjustified
** It expects upcoming regulatory developments — related to Snam's 2027 weighted average cost of capital, second consultation on 2028-2031 regulation and the sale of its biomethane business — to be "likely better than anticipated"
** The broker trims Snam's PT by 1.5% to €6.60; the stock closed at €5.47 on Wednesday
** Out of 21 analysts that cover Snam, six rate the stock "strong buy" or "buy",​ 12 "hold" and three​ "strong sell" or "sell" - LSEG data

(Reporting by Fabrizio La Rocca)
((Fabrizio.larocca@thomsonreuters.com))