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Eni (NYSE:E) is one of the largest oil companies based out of Europe. Given the headwinds of contagion fears on the continent and recent falling oil prices, the stock understandably has been under pressure over the last few months. However, recent events bode well for this 6% plus high yielding energy firm.

Eni – “Eni SpA, an integrated energy company, engages in the exploration, production, transportation, transformation, and marketing of oil and natural gas. The company also involves in the production and sale of electricity; refining and marketing of petroleum products; and production and sale of petrochemical products and hydrocarbons. In addition, it engages in the offshore and onshore hydrocarbon field construction. Further, the company offers offshore and onshore drilling, and offshore design and engineering services for oil and gas companies. Eni SpA operates in Europe, Africa, Asia and Oceania, and the Americas”. (Business Description from Yahoo Finance)

7 reasons ENI is a buy at $43 a share:

  1. Eni provides a robust 6.5% dividend yield at current price levels.
  2. The company just restarted its Libyan operations and should be able to ramp up now that it appears that resistance from the old regime is collapsing.
  3. It also just made a huge gas discovery in Mozambique.
  4. It is selling at the bottom of its five year valuation range based on P/S, P/B and P/CF.
  5. Eni is selling at just over 8 times earnings and half its annual revenues.
  6. Its market cap is just four times operating cash flow.
  7. The stock price is under analysts’ price targets. The median analysts’ target on Eni is $54.
Source: Eni S.p.A: Recent Events Bode Well For This 6% Yielder