Ticker

Brazilian power firm Equatorial and Spain's Iberdrola are in ​talks with Enel to buy assets ‌of the Italian firm in Brazil, Brazilian newspaper Valor Economico reported on Monday, citing ​sources.

Enel (ENLAY) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

Here is how Enel SpA (ENLAY) and Telecom Argentina (TEO) have performed compared to their sector so far this year.

Italy's Enel met with Brazil's power regulator last week, according to official minutes of the ​meeting, which occurred amid a spat over the firm's ‌concession in Sao Paulo, with authorities considering revoking the approval due to a series of outages in recent years during heavy rains.

Enel's Q1 results showed 4% EBITDA and net profit growth, with regulated networks now comprising 42% of EBITDA, offsetting weaker renewables and thermal generation. As ENLAY increasingly resembles an infrastructure platform rather than a traditional utility, the company may justify a higher valuation multiple over time. Ongoing buybacks create additional upside optionality.