BofA Sees Upside for Prysmian Shares Even in 'Harsh' AI Bear Case Scenario

07:15 AM EDT, 10/22/2026 (MT Newswires) -- BofA Global Research noted that its new stress test on Prysmian (PRY.MI) shows a 10% share price upside, even under a "harsh" bear case scenario for artificial intelligence capital expenditure. "We stress-test Prysmian for a significant slowdown in AI/data-center investment, removing the incremental DC earnings contribution from Power Grid and Electrification and normalizing Digital Solutions back below pre-DC telecom economics. Under this scenario, our 2028E EBITDA falls from EUR4.4bn to EUR3.4bn, with the group EBITDA margin at 12.2%. Applying conservative multiples of 12x/10x/8x/6x across Transmission/Power Grid/Electrification/Digital Solutions, our bear-case SoTP still implies c10% upside to current share price. This is not the scenario that we expect to materialize, particularly given the downside in Digital Solutions are likely to be protected by contract terms, however, we think it is important to examine the resilience to Prysmian's earnings," analysts said Wednesday. The research firm noted that the Italian cable manufacturer's transmission and grid segments offer downside protection amid their "limited dependence" on data center demand. Analysts believe a broader structural grid investment cycle will bolster "significant" growth into the 2030s. Concurrently, BofA added that its base case scenario preserves the growth potential linked to Prysmian's positioning across data center power and digital infrastructure, including power cables, grid infrastructure, fiber, and connectivity. "We therefore see attractive asymmetry, with the diversified non-DC earnings base providing valuation support in our bear case while continued data-center investment offers significant upside in our base case scenario," the note said. Accordingly, BofA maintained its buy rating and price objective of 180 euros on the stock.