EQNR - Equinor upgraded at Deutsche Bank after lagging other European oils

2023-03-30 15:53:42 ET

Equinor ( NYSE: EQNR ) +1.1% in Thursday's trading as Deutsche Bank upgraded the stock to Buy from Hold after falling 25% during the past year and lagging other European oil names.

Equinor ( EQNR ) has less EPS sensitivity to oil prices than most peers due to its relatively low unit costs, but from a share price performance perspective it has a leading correlation to oil prices and trades with the highest beta to oil and gas prices, a feature the bank believes will persist and play in the stock's favor, assuming oil markets tighten in this year's H2 as expected.

Nevertheless, Deutsche Bank lowered its 2023 and 2024 earnings expectations for Equinor ( EQNR ) by 38% and 15% respectively, due to the bank's cuts to assumed oil and gas prices.

Equinor ( EQNR ) enjoyed an outstanding year in 2022 but is now facing tough headwinds, with commodity prices retreating significantly from their highs, Fun Trading writes in an analysis published recently on Seeking Alpha .

For further details see: