MS cuts Neste to 'equal-weight' on rising energy policy risks

Neste Oyj

02/04/2026 09:53

** Morgan Stanley downgrades Finnish biofuel producer Neste NESTE.HE to "equal-weight" from "overweight" as the debate shifts towards rising policy risks

** With fuel prices surging, MS warns that "affordability is fast becoming a central consideration in energy policy", elevating the risk of government interventions

** Policymakers may soften blending mandates to alleviate consumer price pressures, a trend already visible in delays to emission targets in Singapore and Italy, it says

** The brokerage adds the recent strong share rally means the market has already priced in much of the earnings upgrade linked to Neste's renewable margin strength

** To reflect a more balanced risk-reward profile, it cuts PT by about 5% to EUR 27, recommending investors wait for a better entry point

** Out of 23 analysts that cover the stock, ten rate it "strong buy" or "buy", eight "hold" and five "sell" or "strong sell" - LSEG data

(Reporting by Marta Frackowiak)

((marta.frackowiak@thomsonreuters.com))