UPDATE: Credite Suisse Initiates Underperform on ENI On Weak Earnings

In a report published Thursday, Credit Suisse analyst Thomas Adolff initiated an Underperfrom rating on ENI Spa ENI and initiated a price target of €18.75. In the report, Credit Suisse says "Weak earnings stemming from G&P, R&M and upstream exposure to higher risk countries have been a feature of Eni in 2013. We believe the market remains too optimistic on a recovery in G&P, R&M (self-help and macro) and North/West Africa (>30% of E&P EV) returning to normality. This may take longer to unwind. Eni has the highest non-OECD exposure at ~80% (eg, RDS at ~40%) by 2020E, which should remain a cause for concern. There may also be risks to capex with increasing project complexity; longer-term deepwater will take a bigger share of overall production." ENI closed on Wednesday at €18.05.