UBS boosts Prysmian as Terna flags geopolitical risks to grids - 7 May 2026

As of May 7, today’s news features Terna’s financial results and ongoing geopolitical tensions, particularly involving the U.S. and Iran. Prysmian captured attention as UBS raised its price target from 135 euros to 175 euros, reaffirming a 'buy' recommendation. This adjustment reflects a substantial increase in the 2028 EBITDA estimates by 20%, placing Prysmian's anticipated performance ahead of market consensus. Analysts have positioned Prysmian as a "key pick" for 2026. Meanwhile, Terna said today its core earnings rose 7% to 697.6 million euros in the first quarter, driven by improved profitability both in regulated and non-regulated activities. The geopolitically tense first three months of 2026 made the need to strengthen the security of the national electricity system clear, Terna said in a statement. Reducing dependence on fossil sources and accelerating the energy transition form another priority for Italy, it added. Terna also confirmed that former CEO Giuseppina Di Foggia had departed the company on May 5 to become chair of energy group Eni. Turning to other markets, German spot power prices experienced a significant drop, decreasing by 17.2% to 111 euros per megawatt hour, primarily due to expected increases in solar power output and weak demand. Predictions indicate that solar power generation in Germany will rise by 6.4 gigawatts, enhancing supply while demand is projected to decline by 1.1 gigawatts. Concurrently, French baseload power prices fell sharply, down 44.1% to 53.80 euros per megawatt hour ahead of the Victory Day holiday, which is set to impact demand. Furthermore, the International Energy Agency (IEA) has warned that ongoing conflicts in the Middle East have already curtailed global liquefied natural gas supply by around 15%, amounting to a loss of approximately 120 billion cubic meters between 2026 and 2030. This disruption is particularly concerning as European Union gas storage levels remain significantly below historical averages. On the corporate front, Shell reported a first-quarter profit of $6.9 billion, exceeding expectations and marking a two-year high, which has led to a 5% increase in its dividend. Despite reducing its share buyback program to bolster liquidity amid war-related energy supply challenges, the overall financial health of the company remains strong. From a geopolitical perspective, the U.S. and Iran appear to be inching towards a short-term agreement to cease hostilities, aiming to stabilize shipping through the critical Strait of Hormuz. Although this scenario brings hope for reduced tensions, deeper issues, particularly concerning Iran's nuclear program, remain unresolved.