Raising Saipem's FVE to EUR 63 After Incorporating Impact of Reverse Stock Split

We're raising Saipem's fair value estimate to EUR 63 from EUR 1.75 to account for the firm's recent reverse stock splits—a 21-for-100 reverse split in May followed by a 1-for-10 reverse split in June. Management indicates the reverse splits are intended to simplify its forthcoming share capital increase, in which Eni, CDP Industria, and several international banks will purchase newly issued shares totaling roughly EUR 2 billion. The issuances are expected to be completed by year-end.