E Stock Forecast & Price Target

Eni's production metrics for 2024, comprising 0.8 million barrels of liquids and 4.8 billion cubic feet of natural gas per day, underscore its substantial operational capacity and growth potential. The company's strategic decision to establish a separate entity for its renewable and low-carbon initiatives, Plenitude, indicates a forward-looking approach that could enhance its market position in the renewable sector. Additionally, the improvement in the balance sheet, demonstrated by reduced gearing from asset sales, strengthens Eni's financial stability and is expected to drive earnings growth significantly through 2026, further contributing to a positive outlook on the company's stock.

Eni faces a challenging outlook due to the adverse impact of a projected $40 per barrel Brent price in 2025, along with expectations of weakened earnings in refining, chemicals, and marketing sectors reflective of recessionary conditions, similar to levels seen during the 2008-09 financial crisis. The global chemicals industry, particularly in Europe, continues to struggle with margins significantly below cyclical norms, further exacerbated by uncompetitive feedstock prices and elevated power costs that hinder profitability. Additionally, while Eni's production metrics indicate stable output, the overall stagnation and declines in upstream volumes across the industry raise concerns about the company's ability to maintain volume growth in a competitive market.