7 Most Undervalued Foreign Stocks to Buy According to Analysts

5) Eni S.p.A. (NYSE:E)

Forward P/E Ratio as of 10 October: 7.30x          

Average Upside Potential: 23.36%

Number of Hedge Fund Holders: 11

Eni S.p.A. (NYSE:E) is an integrated energy company. It explores and produces hydrocarbons in Italy and other countries.

Eni S.p.A. (NYSE:E) reported steady progress in its strategic 4-year plan, emphasizing profitability, growth, value realization, deleveraging, and a competitive distribution policy. The company continues to advance in its energy transition goals, with investments in biorefineries and renewable energy projects, aiming for net zero by 2030. Eni S.p.A. (NYSE:E) has been focusing on its core upstream activities and is advancing in the energy transition with new projects.

Eni S.p.A. (NYSE:E) continues to execute its disposal plan faster than expected, contributing to debt reduction and anticipating leverage to be well below 20% by the end of this year. The company has been witnessing strong demand for biofuels and expects the market to rebalance and revive its margins. Eni S.p.A. (NYSE:E)’s low carbon strategy consists of investments in carbon capture and storage (CCS) projects, that should provide value in reducing CO₂ emissions.

Market experts opine that Eni S.p.A. (NYSE:E) should benefit from a higher oil price environment. Moreover, Wall Street remains optimistic about strategic initiatives that the company has undertaken, mainly in the context of an evolving energy market that increasingly values diversified investments and a balanced approach between fossil fuels and renewable energy sources. In Q2 2024, Eni S.p.A. (NYSE:E) delivered efficient growth and portfolio rationalization while, at the same time, maintaining a disciplined financial approach.

Analysts at Morgan Stanley raised shares of Eni S.p.A. (NYSE:E) from an “Equal-weight” rating to an “Overweight” rating, setting a $39.60 price target on 29^th August.