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Equinor cut to Sell, Galp Energia downgraded to Neutral at Goldman Sachs

Goldman Sachs downgraded Equinor (EQNR) to Sell from Neutral with a price target of NOK 340, down from NOK 390, and downgraded Galp Energia (GLPEY) to Neutral from Buy with a price target of EUR 16, up from EUR 15, in conjunction with the firm’s early take preview of the European Oils group’s earnings for Q3. While updating estimates ahead of Q3 results, including a mark-to-market for Q3 macro and a higher 2024 Brent price, the firm cited strong recent share price performance, a lower FCF yield and a premium valuation for lowering its rating on Equinor to Sell. The firm’s downgrade of Galp cites recent outperformance of the shares and a lower shareholder returns yield compared to the peer average.

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