Morgan Stanley | Our estimates of Naturgy (NTGY) for 2022 are 18% below the objectives set by the company. This is due to our negative vision in LNG and in Latin American currencies.
Formerly Gas Natural Fenosa, Naturgy is a Spanish natural gas and electrical energy utilities firm, which operates primarily in Spain.
It has a payout above the sector and could return 25% of its market cap to shareholders in 2020-22. This is not enough to justify your 5% premium in valuation and the risk we see in benefits. We maintain underweight recommendation.