MS favours defensives, upgrades Galp, cuts Repsol, resumes OMV

Repsol

03/07/2026 08:04

   ** Morgan Stanley cuts earnings estimates for the European energy sector by 5-10% for 2026-27 as it incorporates lower commodity prices into its models
** It says that under softer oil prices, it reverts to defence plays and now favours companies with high-quality operations and attractive valuations
** MS upgrades Portuguese Galp GALP.LS  to "overweight" from "equal-weight", as it "stands out as the most defensive name under coverage" with a strong pipeline of catalysts and attractive valuation
** It cuts Spanish Repsol REP.MC to "equal-weight" from "overweight" due to uncertainty over how quickly share buybacks will be raised and its lower defensiveness versus peers
** It resumes Austrian OMV OMVV.VI with "equal-weight", waiting for a better entry point as the company sits between investment cycles, with weak prospects for chemicals recovery
     

(Reporting by Marta Serafinko in Gdansk)
((marta.serafinko@thomsonreuters.com))