Prysmian Eyes €4 Billion Deal as Shares Hit New Highs

Prysmian shares surge 7.58% to all-time high as CEO signals €4B acquisition target, driven by hyperscale data center demand and 50% fiber optic production boost.

The Italian cable manufacturer is on the acquisition warpath once again. Prysmian chief executive Massimo Battaini has signaled the company is actively hunting for a target worth roughly €4 billion, with an official announcement potentially landing within the next twelve months. The move builds on the group’s recent track record, most notably last year’s takeover of Encore Wire, as it leverages a robust balance sheet to drive industry consolidation.

The market wasted little time rewarding the ambition. Prysmian shares surged 7.58% on Tuesday to a fresh all-time high of €136.30, extending year-to-date gains to more than 52%. The stock has now nearly tripled over the past twelve months, making it one of Europe’s standout performers. Trading volumes were heavy, with around €48 million worth of shares changing hands during the session.

Management has expressed confidence that it will beat its previous EBITDA guidance for 2026, which stood in a range of €2.63 billion to €2.78 billion. The primary engine behind this optimism is the business serving hyperscale data center operators, a segment where demand shows no signs of cooling.

To meet that demand, Prysmian is ramping up fiber optic cable production by as much as 50% over the next two years. The company has earmarked more than $1.2 billion in capital expenditure over a three-year period, betting that these infrastructure projects will eventually generate revenues exceeding $5 billion. The strategy cements Prysmian’s position as a key supplier to the global buildout of digital connectivity.

Yet not everyone on the Street is convinced the rally has further to run. Analyst opinions are increasingly split. Mediobanca rates the stock “Outperform” with a €135 target, while Equita holds at “Hold” with a €130 price objective. Intermonte is “Neutral” at €116, and Banca Akros has gone as far as “Reduce” with a €110 target. Despite the downgrade from Banca Akros, the consensus among 19 covering houses remains “Outperform.”

The average analyst price target of €118.37, however, already sits below the current trading level. The stock’s Relative Strength Index of 74.1 signals technically overbought conditions, suggesting that near-term upside may be constrained as a lofty valuation meets a more moderate earnings growth outlook. For the 2026-2028 period, analysts project annual earnings per share growth of 8%, with the integration of new energy infrastructure requirements serving as the primary valuation driver.