Enel Strategy Under Analyst Scrutiny as Utility’s Profit Falters

Enel SpA’s business strategy came under fire after the Italian renewable energy giant posted first quarter results and guidance that failed to bolster confidence in the utility’s long-term growth.

Analysts from Citigroup Inc. to Morgan Stanley questioned how Enel will achieve its financial targets after reporting declines in first-quarter earnings and revenue. While the Rome-based company maintained its outlook for this year, its shares fell to a two-month low.

Morgan Stanley called the results a “mixed bag,” with the growth in the renewables business and the reassurance on the outlook dented by adverse currency moves in its Latin American ...