05:46 AM EDT, 05/15/2026 (MT Newswires) -- RBC Capital Markets revised its earnings assumptions for Snam (SRG.MI) in line with a model update, noting that the Italian gas utility company remains on target to achieve its full-year outlook following its first-quarter performance.

"We believe Snam's 1Q26 results indicate that the company is on track to achieve full-year 2026 guidance of EBITDA ~EUR3.1bn, net income >EUR1.45bn and net debt ~EUR19bn. Management confirmed guidance on the call. Milestones during the quarter include the OLT acquisition completed in March, and the biomethane disposal which is underway with binding offers expected before the summer and signing before year-end. On regulation, management do not expect the [weighted average cost of capital] trigger mechanism to be activated in 2027 and we await further details on [carbon capture and storage],"according to a Thursday note.

For the three months ended March 31, Snam reported an 8.8% increase in total revenue to 999 million euros, excluding a positive one-off effect related to deflator.

As such, the research firm adjusted its earnings projections, including EBITDA and EPS, for full-year 2026 through 2028, adding that its EBITDA and net income forecasts remain aligned with management's outlook. The updated figures account for a revised assumption of EBITDA breakdown by division, elevated net financial costs, and the reclassification of the biomethane unit as held for sale starting in 2026.

RBC still rates the stock at outperform, with an unchanged price target of 6.4 euros.