Repsol: Oddo raises target price
(CercleFinance.com) - Oddo BHF maintains its "outperform" rating on Repsol shares, raising its target price for them from 15 euros to 17.
5 euros to take into account the new valuation of 1P reserves in its sum-of-the-parts valuation.
By selling off part of the E&P and increasing the share of renewables in the mix, the group is accelerating its rerating, the analyst says, who also sees the group as one of the best positioned to capture the rise in gas and refining margins on diesel.
The broker also considers that the Spanish energy group's valuation remains very attractive, trading at a 2023 P/CF multiple of 2.9x, against 3.6x for the sector and a yield of over 12%, one of the best in the market.
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