Citi ups Snam, sees 2027 returns hit as temporary

** Citi upgrades Italian utility Snam SRG.MI to "hold" from "sell", seeing lower 2027 regulated returns as temporary and largely reversing in 2028

** Italian regulator Arera has set a lower regulatory weighted average cost of capital (WACC) for 2025-27, and can make a further downward adjustment next year, Citi says

** The broker also sees scope for higher inflation-linked growth in Snam's regulated asset base than the company currently assumes, which would support earnings

** It raises its EPS estimates by around 4% from 2028 onwards

** Out of 21 analysts that cover Snam, 7 rate the stock "strong buy" or "buy,"​ 12 "hold" and 2​ rate the stock "strong sell" or "sell" - SEG data