Barclays ups Neste to 'overweight,' sees 2026 setup as compelling

Neste Oyj

17/03/2026 09:13

** Barclays upgrades Finnish renewable fuel producer Neste NESTE.HE to "overweight" from "equal weight," citing a credible operational turnaround and renewed momentum

** "While margin uncertainty is still elevated in 2027, we see 2026 setup as compelling," it says

** The broker highlights the "convergence of three secular drivers" including elevated refining margins, improved biofuel mandates and heightened energy security due to geopolitical disruption

** It forecasts global renewable diesel demand will grow by over a third in 2026, creating a tighter supply-demand balance compared to the previous year

    ** "Valuation is not expensive," the broker adds, noting the stock trades at a discount to peers and its historical average, providing scope for a re-rating

** Barclays raises its PT by 88% to EUR 32, highlighting that cost savings were delivered a year early and the Rotterdam 2 expansion should drive 2027 growth

** Shares of Neste are up 3.2% at 08:36 GMT, extending cumulative March gains to 32%

 (Reporting by Agnieszka Gosciak-Rabalska)

 ((gdansk.newsroom@thomsonreuters.com; +48 58 769 66 00;))