Barclays downgrades Repsol, says it 'can't fight the wider macro'
** Barclays downgrades Spanish oil company Repsol REP.MC to "equal weight" from "overweight" due to weaker refining margins and U.S. Henry Hub gas price weakness
** It says Repsol's strategy is the strongest it's been in over two decades, but that cannot offset the weaker refining margins and HH price that are likely to weigh on Repsol's earnings more than peers
** It notes Repsol's Q3 refining margin in Spain fell by more than a third from Q2 to $4 per barrel, prompting a cut in its FY24 margin forecast to $7 per barrel
** Barclays says Repsol is at a disadvantage with incremental supply coming in mainly from the Middle East and Africa, pressuring European refining margins
** "As such we see better value elsewhere in the sector. We look ahead to '25 with the aim of identifying real areas of differentiation across the stocks," it adds
** It cuts its PT by 17% to 15 euros vs Thursday's closing price of 11.45 euros
** Out of 29 analysts that cover Repsol, 14 rate the stock "strong buy" or "buy", 14 "hold" and one "sell" - LSEG
Reporting by Marta Serafinko
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
