August 2019

In a favorable environment for equity investment, the price of Italgas shares reached a new all-time high of 6.21 euro.
Shareholders’ remuneration was 4.7%, in terms of 2018 dividend yield.

From 1 January to 30 July 2019, when the six-month results have been released, Italgas shares surged by 15.6%, outperforming the European sector index. A rally has generally characterized the equity markets in these first months of the year; the uptrend has been driven by expectations for a context with low cost of money, given the changed attitude of Central Banks. In such a scenario, investors could incorporate into higher prices the Company’s sound fundamentals, proven by the release, quarter after quarter, of healthy results in terms of achieved growth and efficiency.

After the presentation of the new Strategic Plan, at the closing of 12 July 2019 the stock reached the new all-time high of 6.21 euro, a level even higher than the target consensus price of 5.82 euro. From that date on, the price of the share has slightly corrected, in line with the trend of the whole market, waiting for Fed’s intervention on interest rates.

Italgas shareholders in the period also benefitted from the payment of a 23.4-cent dividend. Total Shareholder Return has thus been 20.4% over the period.

The stock boasts a broad coverage, made of 21 brokers, four of which have buying recommendations, while the overwhelming majority (15 analysts) is neutral. The consensus target price is currently 5.82 euro. Following the presentation of the new Plan, on 12 June 2019, analysts have generally revised their P&L estimates upwards, in order to incorporate the benefits of a larger investment plan, also rising their valuation accordingly. The average target price, which stood at 5.4 euro at the end of April, has gradually increased, thus reaching the current level of 5.82 euro.