JPM ups Enagas to 'neutral', says uncertainties are well priced in
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** J.P.Morgan raises Enagas ENAG.MC to "neutral" from "underweight", saying the long-term uncertainties about its green hydrogen ambitions are well priced in
** The Spanish grid operator's stock has underperformed the European utilities sector by 24% in the last 12 months, JPM says
** It says the disposal of its Tallgrass stake at a surprisingly attractive price means the equity story of Enagas' legacy gas business is now very well supported
** "We expect some progress in renewable gases in the next 12 months," JPM says, pointing to further allocation of green hydrogen incentives in Spain and an expected update to Enagas' strategic plans for other new gases
** It adds 2025 seems to be crucial to get clarity on the value of Enagas' assets in Peru, where uncertainty around the GSP arbitration caps any upside on the stock near term
** Out of 21 analysts that cover Enagas, nine rate it "strong buy" or "buy", five "hold" and seven "strong sell" or "sell" - LSEG
Reporting by Jakub Olesiuk
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