Berenberg sees gas prices boosting Equinor's earnings, ups to 'buy'

Bluenord ASA

27/11/2024 11:05

** 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)
 ((marta.frackowiak@thomsonreuters.com))