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Terna S.p.A. (OTCPK:TERRF)(OTCPK:TEZNY) has significantly outperformed the S&P 500 Index (SP500) since the last time we covered the company. There are a few reasons for this, including the increased uncertainty
Terna S.p.A.: Wired For Stability And Growth
Summary
- Terna S.p.A. has recently outperformed the S&P 500, driven by investor preference for defensive assets, favorable currency movements, and solid operational execution.
- Terna is accelerating its capital expenditure, notably on the €23 billion 2024–2028 industrial plan, which includes strategic infrastructure projects like the Tyrrhenian Link to support Italy’s renewable energy transition.
- Despite significant investment activity, Terna maintains a strong balance sheet, improved credit ratings (recently upgraded by S&P), and favorable financing terms, such as issuing green bonds at attractive rates.
- Terna now looks fairly valued, with a modest premium probably warranted given its growth potential and defensive profile. Still, investors should monitor regulatory risks, and potential supply-chain disruptions.
Fin-tech startup leveraging machine learning technology to discover investing opportunities and to generate growth-optimal portfolios. Publisher of the WideAlpha AI-Selected Index, which has markedly outperformed its benchmark.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of TEZNY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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