Equinor initiated with a Market Perform at TD Cowen

TD Cowen initiated coverage of Equinor with a Market Perform rating and $28 price target. The Norwegian oil major is the leading operator on the Norwegian continental shelf and present in about 30 countries worldwide while being “the closest to a pure-play Upstream company within the IOC peer group,” with earnings leverage to global gas prices differentiating its upstream portfolio from peers, the analyst tells investors. Equinor depends on high oil prices to cover its dividend and has a strong balance sheet, says the firm, which expects lower global gas prices moving forward but thinks the excess cash on its balance sheet should “keep distributions competitive over the next few years.”