Repsol: Morgan Stanley upgrades to 'weight in line

(CercleFinance.com) - On Friday, Morgan Stanley raised its recommendation on Repsol shares from 'underweight' to 'weight in line', with a price target raised from 11.
7 to 13.4 euros.

In a research note, the financial intermediary points out that the Spanish energy group has unveiled a better-than-expected earnings outlook for 2025 and share buybacks.

The analyst explains this good performance by the better-than-expected contribution of its downstream activities, leading him to revise upwards his forecasts for the division.

Morgan Stanley adds that the share's valuation is undemanding, with an FCF yield of around 5.5%, among the lowest in the sector.

Conversely, the distribution yield is around 12.4%, in the upper quartile of the sector, concludes the professional.

Copyright (c) 2025 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.