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Financial Results 9M 2025
Hera on stock exchange
Attractive returns for Hera’s shareholders
In a market affected by geopolitical uncertainties, equally uncertain timing of interest rate cuts by Central Banks, and difficulties in assessing the impact of AI, Hera continues to represent a clear and consistent story. Proof of this are the results of the first nine months of 2025, which are fully in line with the path outlined in the Business Plan.
In a context where investors are beginning to question whether certain valuations have become too expensive, Hera stands out as a stock whose price performance appears fully justified by solid fundamentals. So far in 2025, Hera has provided its shareholders with a return of approximately 15% in terms of capital gains, combined with a dividend yield of 4.4% distributed last June, while still offering significant room for appreciation.
Hera is currently trading at around 12.5x earnings, compared to 11.6x at the beginning of the year. Therefore, it is not a stock that investors are paying significantly more for today than ten months ago, especially considering the quarterly results released in the meantime, which have shown continued earnings growth.
It is also important to consider the megatrends in which Hera’s equity story is positioned, which are increasingly attracting the interest of investors who seek solid, long-term themes to build upon, such as the development of infrastructures that enable the energy transition and address the challenges of climate change.
Further upside potential for the share price also appears justified when considering the gap that still exists between the current market price of Hera stock, of about 4 euro, and the consensus target price, of 4.28 euro
Jens Klint Hansen
Have there been any changes in analysts’ recommendations following the release of half-year results?
No changes: the sell-side recommendation picture remains unchanged, evenly split between three buy ratings and three neutral ones. Likewise, the consensus target price has remained basically at the same level, moving from 4.27 to 4.28 euro, as a result of the updates from four different brokers. Noteworthy, in terms of the magnitude of the change, is the improvement in that of Kepler Cheuvreux, whose analyst has now the highest target price within the coverage, as he rose it from 4.40 to 4.70. It was thus exceeded the previous highest target price of Mediobanca, which remained unchanged at 4.50 euro. Although recommendations have remained the same, given the level of the average target price, we can state that there is still room for further appreciation of Hera stock, which is currently trading at around 4 euro.
| Broker | Rating | Target Price (€) |
| Banca Akros | Accumulate | 4.10 |
| Equita Sim | Hold | 4.00 |
| Intermonte | Neutral | 4.30 |
| Intesa Sanpaolo | Neutral | 4.10 |
| Kepler Cheuvreux | Buy | 4.70 |
| Mediobanca | Outperform | 4.50 |
| Average | 4.28 |
What is the current context in which financial markets are operating?
Turbulence continues to define the performance of equity markets. There is a deep underlying uncertainty that makes it difficult to interpret macroeconomic indicators and companies’ quarterly results in a clear way. Following the release of a given data, we often witness trading sessions of euphoric reaction followed by equally abrupt negative reassessments or, conversely, overly punitive responses soon replaced by milder judgments. To escape this volatility, investors are increasingly seeking megatrends to anchor their portfolios.
What does that mean for the utility sector, in which Hera operates?
In 2025, utilities certainly benefited from a favourable macroeconomic factor, such as the reduction in interest rates, which still has room to gain ground and, therefore, to favour further rerating. However, our sector is also at the centre of other broad megatrends: energy transition and greater circularity are still at the top of the European economic policy agenda. Hera is fully invested in it. For example, the creation of an infrastructure system capable of ensuring resilience to extreme weather events and the efficient use of a precious resource such as water are other issues deeply linked to our nature as a multi-utility operator. There are also other megatrends that have already taken shape in the US for some time and are now emerging in Europe, such as stronger demand for increasingly higher electricity consumption due to the development of data centres. This megatrend drove up some stocks in the sector in recent weeks, partly causing us to underperform the FTSE Italy All-share Utility Index in October, as Hera is not exposed to power generation.
What other appealing features can utilities still boast at this stage?
I believe it has been clearly proven by now that our sector has listed companies that represent a safe alternative to investing in traditional growth stories. These utility stocks can boast earnings growth prospects that, while not double-digit, are nonetheless attractive. A story like ours, which leverages a multi-utility portfolio, can offer a low risk profile due to its well-diversified exposure across different operating areas and its presence in activities that are inelastic to GDP trends, but also add the appeal of significant growth opportunities through M&A, when operating in a market, like the Italian one, that still has considerable room for consolidation.
Is the market recognising those features in Hera’s profile?
I would say so. Since the beginning of the year, despite some ups and downs, Hera’s shares have posted significant appreciation, moving from 3.4 to 4.0 euro. In addition to a capital gain of over 15%, there is the 15-eurocents-dividend distributed at the end of June 2025, up by 7.1% compared to the previous year, which represents a yield of over 4% when calculated on the 2024 year-end price. Overall, therefore, this represents a very attractive return for shareholders, with a more than controlled risk profile. Perfectly in line with our equity story.