Jefferies has upgraded its valuation of Prysmian, lifting the price target to €176 from €117 while retaining a "buy" recommendation. The brokerage pointed to rapidly improving prospects in the company’s Digital Solutions division and updated earnings expectations extending through the end of the decade.
Shares of the Milan-based cable and systems group were trading higher following the note, up 2.1% at 04:43 ET (08:43 GMT).
The new target implies roughly 19% upside from Prysmian’s previous closing price of €148 and reflects a higher sum-of-the-parts valuation. Jefferies said the group’s implied 2027 EV/EBITDA multiple increased to 16x from 11x under its prior assumptions.
Model revisions and longer-range forecasts
Jefferies raised its adjusted EBITDA estimates for Prysmian for 2026, 2027 and 2028 by 1%, 7% and 13%, respectively. Adjusted earnings per share forecasts were also increased by 4% for 2026, 14% for 2027 and 29% for 2028. In addition, the brokerage published projections through 2030, forecasting group EBITDA of €4.77 billion by 2030, up from €2.81 billion in 2026, and adjusted EPS rising to €12.45 from €4.89.
Those revisions underpin Jefferies’ view that Prysmian’s value is set to expand materially over the coming years as its higher-growth businesses scale.
Digital Solutions emerges as the primary growth engine
Jefferies said the Digital Solutions unit is becoming Prysmian’s main growth driver amid rising demand for optical fibre infrastructure linked to AI-related data centre expansion. The brokerage expects Digital Solutions revenue to grow at an annual rate of about 20% between 2026 and 2030, effectively doubling over the period. EBITDA at the division is forecast to expand at roughly 30% year-on-year, tripling to €1.12 billion by 2030, with the EBITDA margin increasing to 27.0% in 2030 from 20.5% in 2026.
To support that expansion, Prysmian plans to add more than 50% new fibre capacity over the medium term funded by €1.20 billion of investment. Jefferies also noted the company has revenue visibility in excess of €5.00 billion through a hyperscaler frame agreement.
Pricing, supply and lead-time dynamics
The broker highlighted a marked jump in fibre pricing, reporting that global average bare fibre prices rose threefold year-on-year in 2026, while fibre spot prices were up threefold in the first quarter. It pointed to supply constraints and stronger demand from data centres and defence applications as drivers that have extended lead times from weeks to more than a year for some products.
Those market dynamics are central to Jefferies’ upgraded outlook, supporting both revenue and margin expansion in the Digital Solutions business and contributing to an improved group valuation multiple.
Operational traction and outlook across divisions
Following first-quarter results, management reported a stronger-than-expected start to the year and is targeting the upper end of its full-year guidance range, Jefferies said. The brokerage also expects EBITDA growth in the Transmission business to accelerate in coming quarters and anticipates further margin improvement in both Transmission and Power Grid operations.
For 2026, Jefferies forecasts group revenue of €21.50 billion, adjusted EBITDA of €2.81 billion and adjusted EPS of €4.89. By 2027, those figures are projected to reach €23.29 billion in revenue, €3.39 billion in adjusted EBITDA and adjusted EPS of €6.55.
Jefferies’ note positions Digital Solutions as the engine of growth for Prysmian, driven by structural demand for fibre and constrained supply that has supported higher prices and improved visibility on future revenue.