RBC cuts Terna to 'sector perform' on valuation grounds

Terna Rete Elettrica Nazionale SpA

26/03/2026 07:46

** RBC cuts its rating for Italy's Terna TRN.MI to "sector perform" from "outperform" on valuation grounds, citing risks about consensus earnings-per-share (EPS) estimates

** It says the Italian transmission system operator's stock already prices in the fair premium given Italy's inflation-linked regulatory framework, adding that its low dividend yield of 4.1% brings limited upside remains

** The brokerage adjusts its earnings estimates for the company, now around 8% below consensus for 2026/28 EPS estimates, citing an increase in fiscal burden and the issuance of an 850-million-euro hybrid bond this January

** It, however, adds that "ROSS integrale" incentive plan from Italy's regulatory authority for energy, networks and the environment (ARERA) represents a possible upside to earnings

** Of 21 analysts that cover Terna, six rate the stock "strong buy" or "buy,"​ 12 "hold" and three​ rate the stock "strong sell" or "sell" - LSEG-compiled data

 (Reporting by Mirko Miorelli)

 ((Mirko.Miorelli@thomsonreuters.com))