In a report released today, Jason Gabelman from TD Cowen maintained a Hold rating on Equinor ASA (EQNR – Research Report), with a price target of $22.00.
Jason Gabelman has given his Hold rating due to a combination of factors including Equinor ASA’s ability to maintain production levels in Norway until 2035 and its plans for international free cash flow generation through 2035. The company is open to acquisitions in oil and gas, but these would need to be balanced by divestments. Additionally, Equinor’s strategy includes stable production in the Marcellus region and a focus on incremental US LNG offtake.
Another reason for the Hold rating is Equinor’s financial outlook, which includes maintaining a high tax rate in Norway that could mitigate earnings downside when commodity prices fall. The company plans to keep its net debt-to-capital ratio within a specific range, with projected buybacks from 2026 to 2028. While Equinor’s renewable energy investments and durable oil and gas performance are seen as positive, these factors appear to be fully reflected in the current stock price, and there is uncertainty regarding global gas prices, which could impact the company’s performance.