Naturgy Energy Group SA

NTGY: XMAD (ESP)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€82.10	Lgdk	Lbgcnpty

Naturgy Sets 2022 EBITDA Guidance In Line With Our Expectations; Shares Overvalued

Tancrede Fulop

Nov 14, 2022

We confirm our EUR 24 fair value estimate for no-moat Naturgy after the company released solid nine-month results albeit with sparse details and set 2022 EBITDA guidance in line with expectations but above Factset consensus. The group will pay a second interim dividend of EUR 0.4 per share on Nov.18 implying a full-year 2022 dividend of EUR 1.2, in line with the guidance and involving a 4.4% yield, below the sector median of 4.6%. The shares appear overvalued and more driven by risk arbitrage, given the limited floating capital.

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