Goldman Sachs has expressed a positive outlook for Italy’s cable manufacturing giant, Prysmian, citing strong demand trends and robust earnings visibility. In a research note from January 2, the investment bank highlighted Prysmian’s capabilities in producing underground and submarine cables for power transmission and distribution. It has been added to Goldman’s “Conviction List – Directors’ Cut,” which includes a select group of 15-25 highly rated stocks in Europe. Notably, Prysmian has a significant backlog of approximately 18 billion euros ($18.9 billion) in high-voltage data center projects, ensuring high capacity utilization through 2028, which provides the company with “the highest visibility” among its competitors.
Prysmian also boasts the most diversified end market exposure, with 88% of its operations outside the high-voltage sector and a notable 34% exposure to U.S. construction and industrial sectors. Following a 57% increase in stock price over the past year, Goldman has set a 12-month target price of 73 euros for Prysmian, indicating about 14% upside potential. Other stocks on Goldman’s conviction list include BT Group and Neste, with respective target prices suggesting impressive upside potential of around 97% and 100%.
