Equinor cut to Underweight at Morgan Stanley on bearish price outlook

As previously reported, Morgan Stanley analyst Martijn Rats downgraded Equinor to Underweight from Equal Weight with a price target of NOK 290, down from NOK 325, as part of a broader research note on European Energy space. With commodity prices having already declined, consensus earnings estimates having fallen and dividend yields expanding considerably, the sector is well into a ‘reset lower’, but this is probably not yet complete, the analyst tells investors in a research note. Equinor has rallied with European gas prices in the last few weeks, but the outlook for TTF prices in coming months is bearish, to which Equinor is most exposed, the firm states, adding that with support from the company’s share buyback program already in full-force, it sees “downside risks from here”.