Is Eni (BIT:ENI) Cheap As Argentina LNG Nears Key Sales Deals?
Eni (BIT:ENI) is back in focus after its backing role in Argentina’s planned €24b Argentina LNG project, where YPF is close to sealing LNG sales agreements ahead of a key final investment decision.
Recent trading suggests investors are leaning into that story. Eni’s share price has gained 11.9% over the past 90 days, and its year to date share price return of 49.3% sits alongside a 1 year total shareholder return of 72.8%. This points to strong momentum as the market reassesses both opportunity and risk around its LNG and broader energy portfolio.
Scan for other LNG and energy plays showing similar momentum by checking the hand picked 194 high quality undervalued stocks alongside Eni’s Argentina exposure.
After a run like this, with Eni trading near €24.43 while still implying a sizeable intrinsic discount and only a small gap to analyst targets, where does fair value really fall once the numbers are stacked side by side?
Most Popular Narrative: 3.5% Undervalued
On the most followed view, Eni’s fair value of €25.32 sits modestly above the last close at €24.43. This keeps the LNG driven upside story closely tied to valuation assumptions rather than blue sky optimism.
The analysts have a consensus price target of €25.32 for Eni based on their expectations of its future earnings growth, profit margins and other risk factors.
In order for you to agree with the analysts, you'd need to believe that by 2029, revenues will be €87.2 billion, earnings will come to €5.8 billion, and it would be trading on a PE ratio of 14.7x, assuming you use a discount rate of 8.7%.
See why 68 investors see Eni as 4% undervalued.
Result: Fair Value of €25.32 (UNDERVALUED)
Still, the story around Eni only holds if projects like Plenitude’s long runway to cash neutrality and ongoing Versalis losses do not drag harder on group cash flows.
Find out about the key risks to this Eni narrative.
Next Steps
If the mix of risks and rewards around Eni feels finely balanced, now is the moment to look under the hood yourself and stress test the assumptions against your own expectations using the 3 key rewards and 2 important warning signs.
Looking for more investment ideas beyond Eni?
If Eni has your attention, now is the moment to broaden your opportunity set and line up a few fresh ideas before the next move.
- Target resilient balance sheets and steady fundamentals by scanning the list of solid balance sheet and fundamentals (195 results) that can help anchor your portfolio when sentiment swings.
- Spot quality at a discount and compare it with Eni by reviewing the curated 194 high quality undervalued stocks that currently pass strict fundamental checks.
- Stack potential income streams on top of any Eni holding by assessing the 161 dividend fortresses that combine higher yields with disciplined payout profiles.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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