ENI S.p.A. Common Stock (NYSE: E)
Eni SpA is an integrated energy major of Italy with interests in the oil and gas, power and petrochemical sectors.
Industry experts believe that the outlook for the company's gas trading business is bleak over the next couple of quarters. However, Eni would probably rely on the Libyan gas contracts, as it has made an advance payment of nearly $1.3 billion toward supply. Besides, the company is negotiating projects in Kazakhstan, Iraq and Venezuela. Accordingly, capex for 2010 has been increased from around $18 billion to $20 billion.
The Italian government's plan to divest its stake in Eni is another positive trigger. The government is likely to table the divestment plans in parliament during the first half of 2011.Eni has revised its full-year tax guidance for 2010 from 57% to 55%. Accordingly, analysts upgraded EPS estimates by 3%, aiding in not only favorable tax provisions, but also higher contribution from associates. The stock is trading at 7.7 times its estimated 2011 earnings.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV