REPYF - Repsol: Downgrading To A Hold Ahead Of Q1 Earnings Announcement

2024-04-23 09:24:41 ET

Summary

• Repsol's stock has rallied over 11% in the past 12 weeks, but may struggle to achieve further gains due to overhead resistance.
• The long-term technical chart suggests lower prices over the mid-term, leading to a pattern of shareholders liquidating holdings.
• Growth concerns persist as all segments except the 'Customer' segment saw a decline in fiscal 2023, raising questions about the company's ability to compensate for sluggishness in the upstream segment.

Intro

We wrote about Repsol, S.A. ( OTCQX:REPYY ) back in January of this year when we rated the stock a 'Buy' due in part to the strength of Repsol's dividend . Shares have been able to rally over 11% over the past 12 weeks or so. Another key reason for our bullishness in Repsol at the time was the technical breakout the stock underwent in 2022, which ended the lower multi-year lows on the technical chart. However, with the stock now coming up against more overhead resistance (namely Repsol's 2011 highs), more gains (at least over the near to mid-term) look like they will be difficult to achieve....

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