Goldman Sachs upgraded Italian gas infrastructure operator Snam to “buy” from neutral, citing a €14 billion five-year capital expenditure plan and 9.7% upside from its €6.29 stock price. The upgrade, tied to a March 5 Capital Markets Day, reflects expectations of accelerated infrastructure investment to modernize Italy’s gas network. Structural shifts in Italy’s energy imports—now 50% from southern entry points versus 20% pre-2019—drive the need for grid upgrades, including southern-to-north transmission reinforcements and LNG node expansions. Goldman projects 5% annual EPS growth through 2030, double consensus estimates, with net income reaching €1.80 billion by decade’s end.

The stock trades at a 13.5x P/E, below peers like Terna and Redeia, suggesting undervaluation despite stronger earnings momentum. Analysts note a 20% discount to regulated counterparts, arguing capex acceleration and earnings growth will spur a re-rating.