Equinor ASA: Strong Financial Position and Growth Potential Amid Challenging Market Conditions

Analyst Christopher Kuplent of Bank of America Securities reiterated a Buy rating on Equinor ASA (0M2Z – Research Report), reducing the price target to NOK290.00.

Christopher Kuplent has given his Buy rating due to a combination of factors, primarily focusing on Equinor ASA’s strong financial position and potential for growth despite challenging market conditions. The company’s balance sheet is notably robust, with low financial leverage compared to its peers, which positions it well to withstand economic headwinds and maintain financial stability.
Furthermore, Kuplent highlights Equinor’s capacity to generate organic free cash flow yields, projected at 12% in 2025, which is expected to remain competitive even as yields decrease to 8% by 2027. The analyst also notes that Equinor’s cash return yield is supported by its balance sheet strength, with gearing consistently below 15%. Additionally, despite a reduction in earnings estimates, Equinor still offers significant upside potential, with a 15% increase in adjusted net income anticipated for 2025, making it an attractive investment in the European Big Oil sector.

In another report released today, Barclays also maintained a Buy rating on the stock with a NOK325.00 price target.