Equinor: share up as Berenberg less pessimistic

(CercleFinance.com) - Equinor shares began to rebound on the Oslo Stock Exchange on Thursday, buoyed by Berenberg comments, which upgraded the stock.


Shortly before 2pm, the Norwegian energy company's shares were up 1.2%, compared with a 1.1% rise for the OSEBX index and the pan-European STOXX Europe 600 Oil & Gas sector index.

Berenberg analysts this morning upgraded the stock from 'sell' to 'hold', with a target price raised from 260 NOK to 290 NOK, even though they acknowledged that the market environment was becoming tougher.

After a period of high oil and gas prices, the outlook for the European black gold, gas and LNG sector, and for refining margins, has deteriorated significantly, they say.

From the analyst's viewpoint, this situation is likely to penalise the earnings of sector players, as well as their cash flow and share buybacks, over the coming quarters.

Despite this, we still see potential for value creation for investors prepared to be patient, Berenberg adds.


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