In a report released today, Michele Della Vigna from Goldman Sachs downgraded Aker BP ASA (0M5J – Research Report) to a Sell, with a price target of NOK230.00.
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Michele Della Vigna has given his Sell rating due to a combination of factors impacting Aker BP ASA. Despite recognizing the company’s high-quality exploration and production portfolio, the decision is influenced by an unfavorable risk-reward scenario anticipated in the medium term. This is primarily due to a forecasted weakening macroeconomic environment, which could negatively impact the company’s financial performance.
Additionally, Della Vigna points out that Aker BP is expected to face increased financial leverage due to substantial capital expenditure commitments over the next two years. This period of heavy investment is set to occur before any production growth is realized in 2027. Furthermore, the company’s stock is currently trading at a premium compared to its European exploration and production sector peers, adding to the rationale for the Sell rating.
In another report released on June 3, RBC Capital also maintained a Sell rating on the stock with a NOK220.00 price target.