Deutsche Bank has moved Prysmian from a buy rating to hold, saying that the stock's recent run-up leaves less room for immediate upside. The bank's analyst, Nabil Najeeb, reduced the price target to €100 from a prior range of €97 to €100 and urged investors to consider taking profits after a strong year-to-date performance.
Prysmian's shares have risen 19% so far this year and last closed at €102.95, according to the bank. Deutsche Bank calculates that Prysmian is trading at roughly 16x EV/EBITA on a 2026 basis, a multiple that marks a notable compression from the undemanding valuation that formed a central pillar of the earlier investment case.
Najeeb said the valuation advantage that once set Prysmian apart from leading European electrical peers has largely dissipated. That narrowing of the valuation gap is a primary reason for the downgrade, as it reduces the margin of safety and limits potential near-term returns from current levels.
The analyst also addressed expectations tied to tariffs. Forecasts that Prysmian might secure additional U.S. market share on the back of copper and aluminum tariffs have been elevated, he said, but progress may be slower than investors expect because tariffs on copper cables continue to be delayed.
Deutsche Bank expects a solid fourth-quarter performance from Prysmian. However, the bank cautioned that full-year 2026 EBITDA guidance is likely to be, at best, in line with current consensus, which further constrains the upside case for the stock in the near term.
Despite the downgrade, Najeeb acknowledged that Prysmian's management has demonstrated consistent execution. The company remains exposed to long-term structural trends such as electrification and data center buildouts, which support the longer-term investment thesis. Still, given the tightened valuation, Deutsche Bank believes much of those positives are already reflected in the share price.
Clear summary: Deutsche Bank downgraded Prysmian to hold and lowered its price target to €100 after a 19% YTD share price increase left valuation closer to peers. The bank points to a 2026 EV/EBITA of about 16x, delayed tariffs that may slow U.S. market-share gains, and limited scope for FY26 EBITDA upside as reasons the stock's near-term appreciation is constrained.