GS downgrades Neste to 'neutral' from 'buy' on limited share price upside

Neste Oyj

19/03/2026 10:42

** Goldman Sachs downgrades Finnish oil refiner Neste NESTE.HE to "neutral" from "buy", citing limited upside after recent share outperformance despite a higher PT

** The broker raises its PT by over 17% to EUR 27, lifting 2026 EBITDA estimates by 32% on higher margin forecasts for both its oil refining and renewables units

** GS notes Neste's oil refining business benefits from a spike in diesel and jet fuel prices, with its Finnish refinery largely insulated from supply chain disruptions

** Higher diesel prices also provide short-term tailwinds for the renewables division, but GS sees "rising risks to biofuel mandates on rising affordability concerns"

   ** The brokerage warns high inflation in Europe creates risks for biofuel mandates, noting Germany could revise its targets, hurting Neste's 2027-2030 renewables earnings

** The downgrade comes as the stock has outperformed its sector by 25 percentage points since February, with the new PT implying 4% downside from current levels - GS

** Out of 23 analysts that cover Neste, 11 rate the stock "strong buy" or "buy,"seven rate "hold" and five rate the stock "strong sell" or "sell" - LSEG

 (Reporting by Agnieszka Olenska)

 ((Agnieszka.Olenska@thomsonreuters.com;))