UBS upgrades Prysmian to Buy, raises target to €105 on tariff and AI tailwinds

 UBS analyst Christopher Leonard has initiated coverage of Prysmian SpA (PRY.MI) with a Buy rating and raised the 12-month price target to €105 from €85. Leonard cites a mix of structural and near-term drivers underpinning the upgrade: Prysmian is a US tariff beneficiary with significant LV Electrification exposure in a protected market, strong Transmission (HV) backlog underpinning EBITDA growth to 2028, and Digital Solutions positioned to benefit from AI and data centre demand. UBS now models a 19% EBIT CAGR for 2024-27e, above peers, and says “margins to remain at elevated levels, assuming the tariff regime stays in place - we are 3% ahead of consensus EBITDA across 2026-28e.” The bank highlights potential upside from faster deleveraging after the YOFC disposal (~€560m cash in 2025) and possible M&A from 2026, as well as catalysts including a US dual listing or treasury share cancellation. Key risks include a reversal of the US tariff regime, margin normalisation in Electrification/Grid, project execution on Transmission contracts, macro/FX exposure and integration risk from any acquisitions. Current price: €87.46 (07 Oct 2025); implied upside ~+20% to €105 PT (prior PT €85 implies ~-3% from today).