Eni (E) shares are due a "breather" after a "strong" run as its valuation is now comparable to peers and makes the risk-reward "less compelling" amid uncertainty over Chief Executive Claudio Descalzi's potential transition when his term ends in 2026, RBC Capital Markets said in a Tuesday report.

The energy company's execution on the divestment front and exploration success have bolstered its balance sheet and driven recent outperformance despite macroeconomic volatility, the analysts said.

RBC said the company could ramp its share repurchase program from 1.5 billion euros ($1.75 billion) later this year, subject to macro conditions. Analysts expect the increase to be between 200 million euros and 300 million euros.

The restructuring of the company's chemicals division involving the closure of cracking at several units is expected to stem losses in the next quarters. The brokerage said the overhaul is expected to drive upside to H2 2025 and 2026 earnings estimates.

The brokerage downgraded the stock to sector perform from outperform and set a price target of 17 euros for Milan, Italy-listed shares.

Price: 35.37, Change: -0.41, Percent Change: -1.13