Prysmian (PRY) receives dual boost from S&P outlook upgrade and J.P. Morgan target revision
Prysmian, the Italian manufacturer of cables and energy systems, received a dual boost this week as S&P Global Ratings upgraded its outlook and J.P. Morgan revised its price target upwards. S&P Global Ratings moved Prysmian's outlook from negative to positive on 27 May 2026, while affirming the company's long-term credit rating at BBB-. Concurrently, J.P. Morgan increased its price target for Prysmian shares to €172 from €138, reiterating an "Overweight" rating.
J.P. Morgan's optimism stems from the robust potential of Prysmian's Digital Solutions division. The investment bank highlighted growth driven by increasing demand for fibre optics, a trend fuelled by the expansion of artificial intelligence, the proliferation of data centres, and the activities of hyperscalers. These sectors necessitate increasingly high-performance and widespread connectivity infrastructure, a demand Prysmian is well-positioned to capitalise on.
The upgrade in S&P Global Ratings' outlook reflects enhanced confidence in the Italian firm's financial stability and operational prospects. On the market today, 28 May 2026, Prysmian shares (PRY) are trading at €149.40, marking a 2.0% increase from yesterday's close of €146.50.
Why J.P. Morgan sees more upside in Prysmian's digital infrastructure
Prysmian is an Italian company that manufactures the essential cables and systems underpinning our modern world. Think of them as building the critical infrastructure, the "highways and nerve networks," that allow electricity to reach our homes and data to travel across continents. Their customer base is broad, ranging from major energy utilities to telecommunications providers and even tech giants who rely on high-speed fibre optic connections for their data centres and vast networks.
The primary driver behind Prysmian's share movement today is J.P. Morgan's decision to revise its price target for the company. The bank upgraded its estimate from €138 to €172, while maintaining an "Overweight" rating. This adjustment signals a significantly increased confidence in the growth potential of Prysmian's Digital Solutions division, which is poised to benefit directly from the ongoing expansion of artificial intelligence, the proliferation of data centres, and the extensive activities of hyperscalers , all sectors demanding increasingly robust fibre optic infrastructure. This optimism was further supported by S&P Global Ratings upgrading its outlook from negative to positive on 27 May 2026.
This analyst upgrade has had an immediate impact on the market, with Prysmian shares currently trading at €149.40, marking a 2.0% increase from yesterday’s close of €146.50.
Consider a financial analyst's price target like a navigation system calculating your estimated arrival time. If the system initially gave you a destination time based on average traffic, but then received new information about a newly opened, faster route, it would recalculate and update your arrival time. Similarly, J.P. Morgan has recalibrated its "target value" for Prysmian, based on fresh insights into the company's capacity to capitalise on the surging demand for digital infrastructure, indicating a greater growth potential than previously anticipated.
Prysmian
Prysmian S.p.A. (PRY) is a global manufacturer and distributor of cables and systems, alongside associated accessories, catering to the energy and telecommunications sectors. Its operations are organised into three distinct segments: Projects, Energy, and Telecom. The Projects division focuses on designing, producing, and installing high and extra high voltage cables for electricity transmission, including terrestrial and submarine applications, as well as data transmission and umbilical cables for oil well management. The Energy segment encompasses trade and installer products, power distribution, overhead transmission lines, and industrial network components for diverse industries such as oil and gas, automotive, and renewable energy. The Telecom segment manufactures cable systems and connectivity products, including optical fibre, optical cables, and copper cables for telecommunication networks. Prysmian S.p.A. was founded in 1879 and is headquartered in Milan, Italy.