TTE - Credit Suisse initiates coverage of European oils

Credit Suisse initiated coverage of the European oil names Thursday, with buy ratings on Shell (SHEL) and Total (TTE), and hold ratings on Equinor (EQNR) and BP (BP). At Shell (SHEL), analyst Amy Wong sees ~30% upside as the energy transition strategy is under appreciated by the market. Buy-rated Total (TTE) shares have 11% upside to Wong's target, as M&A and heavy upstream investment in recent years will lead to faster upstream growth than markets expect. Equinor (EQNR) is hold-rated, as government support during the pandemic is set to be offset by increased tax payments in 2023+, leaving the name expensive to peers despite favorable European natural gas exposure. BP (BP) is also hold-rated, as Credit Suisse does not believe management will be able to hit convenience and mobility targets. In aggregate, Wong shows upside to the space, despite Credit Suisse assuming $85 Brent (CO1:COM) in 2023 and $80 in

For further details see:

Credit Suisse initiates coverage of European oils