Pampa Energía’s latest research update kept the fair value estimate stable at ARS 5,016.5 per share and the discount rate unchanged at 24.22%, underscoring confidence in the company’s risk and return profile. Slightly higher revenue growth projections of 12.21% are now more clearly linked to structural reforms in power generation and tighter integration with gas operations. Together, these factors support a more creative narrative without forcing a complete model reset. Stay tuned to see how you can track these evolving assumptions and see story changes that could drive future revisions to the stock’s target price.
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🐂 Bullish takeaways
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Citi upgraded Pampa Energía to Buy from Neutral, indicating increased confidence in the stock’s risk-reward profile.
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The firm raised its price target from $92 to $113, reflecting a more optimistic view on value creation from its current strategy and asset base.
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Citi highlights significant benefits from recent and ongoing changes in Pampa’s power generation business, which it sees as key drivers of improved earnings quality and growth visibility.
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Citi’s analysts also point to high monetization potential in the gas upstream segment and strong integration between power and gas operations, which they have partially incorporated into their updated model.
🐻 Bearish Takeaways
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Even after the upgrade, Citi notes that only part of the expected gains from power generation and gas upstream integration are reflected in its model, which leaves room for execution risk and uncertainty around the full upside.
Are your views aligned with bull or bear analysts? Maybe you think there’s more to the story. Visit the Simply Wall St. community to discover more perspectives or start writing your own story!
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The fair value estimate remains unchanged at ARS 5,016.5 per share, indicating no revision in intrinsic value valuation.
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The discount rate is stable at 24.22%, suggesting no change in the perceived risk profile or cost of capital assumption.
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Revenue growth has been partially revised down to 12.21%, a technically positive but financially immaterial adjustment to long-term growth expectations.
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Net profit margin increased slightly to 24.28%, reflecting margin improvement over estimated profits.
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The forward P/E increased slightly to around 13.09x from 13.00x, indicating a marginally higher multiple applied to forward earnings.
