Berenberg sees gas prices boosting Equinor's earnings, ups to 'buy'
** Berenberg upgrades Equinor EQNR.OL to "buy" from "hold", expecting gas prices to drive earnings higher for the Norwegian energy company
** It notes European gas prices have so far been strong in Q4 helped by low output from renewables, increased Chinese liquefied natural gas (LNG) imports, and cold weather
** Of the European integrated names, Equinor has the highest exposure to European gas at about 35% of production, it says
** The company does not hedge its European gas production so it is fully exposed to current strength in spot pricing, Berenberg adds
** The broker sees strong pricing through 2025 and 2026, hence increases its forecast to $12/$9/mmbtu, respectively, while raising Q4 2024 forecast to $13.5/mmbtu
** Berenberg raises target price by 12% to NOK 325
** Out of 30 analysts covering Equinor, eight rate the stock "strong buy" or "buy," 13 rate it "hold" and nine rate the stock "sell" or "strong sell"
Reporting by Marta Frąckowiak
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