OMV AG initiated with a Sector Perform at RBC Capital

RBC Capital initiated coverage of OMV AG (OMVKY) with a Sector Perform rating and EUR 50 price target The firm credits OMV’s decision to combine its shareholdings into a single, more resilient business by creating Borouge Group International amid an extended chemicals downcycle, arguing that BGI brings near-term earnings uplift while its floor dividend should allow OMV to upgrade its payout policy at its Capital Markets Day on October 6. However, the firm sees potential upside reflected in the shares with consensus expectations moving higher and given the significant year-to-date outperformance in shares, the analyst added.