OMV: UBS upgrades 'sell' rating, but remains cautious

(CercleFinance.com) - UBS is no longer negative about the share of the Austrian oil group OMV, with its analysts upgrading their "sell" rating to "neutral".


At the same time, they have raised their 12-month target price from 38 euros to 51 euros (+34.2%), which is roughly the share's current price on the Vienna Stock Exchange.

The broker mentions in its research report that its fears about the group's debt and asset portfolio have been lifted by successful divestitures, a significant refocusing of the Upstream business refocusing on projects that are more profitable over the long term, and the strength of margins in its Downstream operations. The group's gearing is expected to return to 26% at the end of the year, a level that is in line with that of its sector.

In short, UBS acknowledges that OMV now seems to be in a much more favorable financial situation after such disposals and cuts in investments.


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