E Stock Forecast & Price Target

Eni has demonstrated a strengthened balance sheet through recent asset sales, indicating a lower gearing ratio than previously anticipated by the market, which is a positive sign for financial stability. The company's significant production growth, particularly from the promising Indonesia joint venture and other discoveries, enhances its upstream volumes and positions Eni for improved earnings through 2026. Furthermore, the strategic separation of its renewable and low-carbon business into a distinct entity, Plenitude, signals a forward-looking approach that may lead to additional public market opportunities and further financial gains.

Eni is facing significant challenges due to a projected downside scenario predicting Brent crude prices to drop to $40 per barrel in 2025, alongside anticipated declines in refining, chemicals, and marketing earnings as economic conditions approach recession levels. The global chemicals sector has also experienced persistent margin pressures stemming from subdued demand growth and competitive disadvantages in Europe, particularly from high feedstock and power prices. Additionally, stagnation in upstream volumes within its peer group further compounds Eni's difficulties, with substantial declines reported by comparable companies, highlighting potential vulnerabilities in Eni's production and growth prospects.