EON Is in Talks to Sell Its Stake in Turkey’s Enerjisa



FEZ’s top stocks

On Tuesday, January 19, 2016, the stocks at the top of the SPDR Euro Stoxx 50 ETF (FEZ) were EON, Schneider Electric, Sanofi (SNY), Unilever (UN), Societe Generale, Anheuser-Busch (BUD), and L’Oreal (LRLCY). These stocks gained 7%, 3.5%, 3.4%, 3%, 2.6%, 2.2%, and 2%, respectively, on that day.

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Reasons behind EON’s performance

  • EON is planning to sell its stake in Turkey’s biggest energy company Enerjisa to improve its debt and equity balance.
  • EON’s partner Haci Omer Sabanci Holdings is also planning to sell a stake in Enerjisa.
  • Also, both companies are interested in selling a minority stake to one or more Chinese investors.
  • Enerjisa is continuously trying to optimize its financial and operational performance.
  • EON wants to sell the stake in Enerjisa and invest those amounts on renewable energy resources.

EON’s returns

EON is currently trading at 8.8 euros. Its 52-week high is 14.9 euros while its 52-week low is 7.1 euros. It returned -40% in 2015, and its current price-to-earnings ratio is 17.8x. That’s relatively higher than its peer Schneider Electric. EON’s current price-to-book value ratio is 0.96x.

It’s trading 1% below its 100-day moving average, at par with its 50-day moving average, and 2% above its 20-day moving average. The 100-day moving average is a strong resistance point for the stock. In fact, the stock was unable to cross its 100-day moving average in the last seven months. Analysts’ estimates indicate an upside of 18% for EON over the coming 12-month period from its current levels as of January 19, 2016.

In the next part of this series, we’ll analyze the performance of Sanofi on January 19, 2016.


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