Italgas, Snam, and Terna face target price cuts

Equita has lowered the target prices for Italian utility companies Italgas, Snam, and Terna following the conclusion of the observation period for the 2027 regulatory WACC (Weighted Average Cost of Capital) recalculation.

The regulatory WACC is the rate of return on invested capital recognized by authorities to determine tariff revenues for infrastructure companies. Based on data available at the end of September, the WACC trigger is expected to result in a reduction of the recognized rate by approximately 30 to 40 basis points in the base scenario. This impact is considered particularly significant for companies with high exposure to regulated activities, such as Italgas, Snam, and Terna.