Repsol upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Sasikanth Chilukuru upgraded Repsol to Overweight from Equal Weight with a price target of EUR 17, up from EUR 14.10. The energy sector has an extended period ahead of strong free cash flow, buybacks and dividend growth, even without relying on commodity price upside, the analyst tells investors in a research note. Market expectations have moderated recently, consensus estimates are “beat-able” again and valuations look “compelling,” contends the firm. Morgan Stanley double upgraded the European energy sector to Overweight.