Equinor upgraded to Outperform from Sector Perform at RBC Capital

RBC Capital analyst Biraj Borkhataria upgraded Equinor to Outperform from Sector Perform with an unchanged price target of NOK 390. The shares have underperformed peers year-to-date as European gas prices have moved from unusually high levels in 2022 back to the long-term trend, the analyst tells investors in a research note. However, the firm thinks Equinor’s recent underperformance reflects industrial demand remaining weak and storage quickly filling, while its balance sheet and net cash position should allow 2024 distributions to be at a similar level to this year, meaning the company can return 40% of its current market cap back to shareholders through 2024.