EQNR - Equinor run-up may be 'as good as it gets' RBC says in downgrade

Equinor (NYSE:EQNR) is downgraded to Sector Perform from Outperform at RBC Capital, saying the company's balance sheet superiority likely will narrow as peers rapidly reduce their debts. Equinor's (EQNR) stock "has outperformed the peer group materially over the last year as the surge across both oil and gas prices provided a significant tailwind for cash generation, while lower cash taxes in the near term ultimately left Equinor de-leveraging much faster than peers," RBC analyst Biraj Borkhataria writes, but "the risk-reward is now well understood, while the balance sheet advantage is likely to narrow over time as peers rapidly de-lever." Expecting moderating natural gas prices and a rising tax bill, Borkhataria foresees Equinor's (EQNR) cash generation for 2022 being heavily weighted to Q1 and its net cash position improving only modestly from here through 2022. Also warning that the likely deterioration in gas prices and an expectation that tax tailwinds will shift

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Equinor run-up may be 'as good as it gets,' RBC says in downgrade