Prysmian Detailed notes from the J.P. Morgan European Industrials Conference

Research evidence excerpt

Prysmian Detailed notes from the J.P. Morgan European Industrials Conference

Akash Gupta AC Europe Equity Research

(44-20) 7742-7978 22 June 2026 J P M O R G A N

akash.z.gupta@jpmorgan.com

Investment Thesis, Valuation and Risks

Prysmian (Overweight; Price Target: €172.00)

Investment Thesis

• Energy transition and Grid spending to drive growth in Europe: ~35% of

Prysmian's revenues come from medium- and high-voltage grids, where we see strong

growth in the coming years from the existing backlog and customers’ investment plans.

Both segments are margin accretive.

• Electrification and data centre investments to boost growth in the US: Driven by

the acquisition of Encore and Channell, we estimate the US to account for ~40% of

group sales and >50% of Adj EBITDA. Growth in the US is driven by electrification

(incl data centers) and grid modernization. Strong growth for optical fibers brings

another growth opportunity in the U.S.

• Strong cash-flow generation prospects: We also like Prysmian’s strong cash-flow

generation profile, which, despite higher capex levels, is better than that of its cable

peers. A continued increase in the HV backlog should provide a tailwind for cash flow.

Valuation

• Our June 2027 Price Target is based on a reverse DCF valuation. The 12-month forward

target multiple is 17x EV/adj. EBITA, applied to our 2028 forecasts and discounted back

by 6 months. We adjust our EV for negative working capital in the Transmission

business and €1bn hybrid bond.

Risks to Rating and Price Target

• We see the following downside risks: 1) Delays in project awards could push-out

growth in HV and bring downside risk to estimates. 2) Compliance risks – The cable

industry has been accused of cartel-like activity and any potential accusation in the