Equinor downgraded to Hold from Buy at Berenberg

Berenberg downgraded Equinor (EQNR) to Hold from Buy with a price target of $26.44, down from $30.54. The firm cites a potentially significant increase in the company’s leverage during Q2 and a reduction in Berenberg’s long-term shareholder distribution outlook for the downgrade. The increase in leverage is in part driven by an expectation that the Empire Wind 1 project, offshore U.S., will be cancelled, and a decision on whether or not to continue the project is likely in the near term, the analyst tells investors in a research note. The firm believes Equinor’s leverage could more than double in Q2.