Eni (E) reported mixed Q1 results, with earnings falling below expectations mainly due to weakness in its downstream business and higher maintenance costs, RBC said in a note emailed Monday.

The analysts said the results were, however, overshadowed by a more positive guidance, leading the company to increase its share buyback program from 1.5 billion euros ($1.76 billion) to 2.8 billion euros. "We had expected companies to remain cautious amid volatile macro rather than sticking to formulaic payouts in Q1, however with Eni being the first to report, management has thrown down the gauntlet to the rest of the sector," RBC said.

Looking ahead, several potential positives could support the company, including developments in Indonesia and Venezuela, which are not yet included in guidance, with potential upside in the 2030 time frame, the firm said. On the downside, there is some uncertainty around a possible share placement by the Italian government, which could weigh on sentiment, the analysts said.

The analysts said they are raising 2026 earnings per share estimate by 3%, while cash flow from operations estimate is down 3%. They now assume 3.2 billion euros in buybacks, above the company's guidance, based on a higher oil price outlook.

RBC maintains a sector perform rating and a price target of 28 euros on Eni.

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