Equinor (EQNR) is set to benefit from a boom in commodity prices as oil and gas market disruptions provide the sector with material tailwinds, RBC Capital Markets analysts said in a Thursday note.
Analysts said they support the company's move toward a slightly broader international strategy and expect the current windfall to provide greater optionality for future inorganic activity.
RBC said oil product tightness will likely be the most significant bottleneck for the energy complex, considering ongoing disruptions in the Middle East and in Russia.
Analysts added that since Equinor is sensitive to European gas prices, it is expected to benefit from short and long-term changes in gas prices.
RBC upgraded the stock's rating to sector perform from underperform, and raised its price target to 420 Norwegian Kroner ($43.7) from 360 Norwegian Kroner.
Price: 41.50, Change: +1.54, Percent Change: +3.84
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