Repsol: Oddo BHF still says 'reduce' after results
(CercleFinance.com) - Oddo BHF sticks with its "reduce" rating on the Repsol share, along with its target price of 16 euros (current price of just over 15 euros), the day after the Spanish energy group published Q3 results that exceeded expectations, driven by downstream operations.
Repsol remains the player that should benefit the most from IMO 2020, given its excellent exposure to refining, although it remains very exposed to natural gas (two thirds of its mix, but no exposure to LNG) whose prices are under pressure, the analyst judges.
Oddo BHF adds that the group's "ROACE (return on average capital employed) and FCF yield are lower than its competitors and hence justify the share's discount, although it notes that the group is trying to remedy this by reducing its Capex.
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