Repsol: Berenberg remains a buyer

(CercleFinance.com) - Berenberg is maintaining its "buy" rating on the Repsol stock, along with its target price of 18 euros, after the Spanish oil and gas group's trading update, which showed macro-economic conditions that have become more difficult.


"The stock remains attractively valued, trading on 10.4x 2019E P/E, with a 6.4% dividend yield," the broker still points out, underlining the group's commitment to increase its dividend by 8% p.a. to one euro in 2020.

"Repsol's strong downstream position in Spain provides some downside protection in the event of lower oil prices, and leaves it well placed to benefit from the International Maritime Organization's sulphur regulations over the coming two years," it continues.



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