Snam SpA

SRG: XMIL (ITA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€9.60	Pww	Tpbytzzzh

Snam: Initiating Coverage With No-Moat Rating and EUR 4.70 Fair Value Estimate; Shares Fairly Valued

Tancrede Fulop

Nov 20, 2023

We are initiating coverage of Snam with a no-moat rating and a EUR 4.70 fair value estimate, implying an enterprise value/EBITDA multiple of 11.2 times, EV/regulatory asset base of 1.3, and price/earnings of 13.1. While we like Snam’s regulated assets and believe they benefit from efficient scale, we assign a no-moat rating to the company as regulation limits pretax allowed returns to keep prices low for customers.

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