Eni (E) Downgraded to Hold at Erste Group. Here is Why

With an annual dividend yield of 5.21%, Eni S.p.A. (NYSE:E) is included among the 10 Energy Stocks with Highest Dividends.

Eni S.p.A. (NYSE:E) operates as an integrated energy company in Italy, the rest of Europe, the United States, Asia, Africa, and internationally.

On June 25, Erste Group analyst Hans Engel downgraded Eni S.p.A. (NYSE:E) from ‘Hold’ to ‘Buy’, without assigning the stock a specific price target.

According to Erste Group, the Italian energy giant is well-positioned in 2026 to more than offset the natural production declines from its mature fields by ramping up new gas and LNG projects. However, the analyst firm expects energy prices to remain lower in the second half of the year than they were in the first half, which is likely to weigh on the company’s profitability.

Eni S.p.A. (NYSE:E) is targeting an underlying oil & gas production growth of 3-4% for FY 2026. Meanwhile, its gross capex and net capex for the year have been confirmed at €7 billion and €5 billion, respectively.

Eni boosted its share buyback by around ​90% to ​€2.8 billion ($3.27 billion) in April, and also raised its full-year cash flow from operations guidance by 20% to €13.8 billion.

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