Repsol: Barclays raises target price; still 'overweight'.
(CercleFinance.com) - Barclays has raised its target price on Repsol, Europe's eighth-largest oil company in terms of revenue, from 18 euros to 20 euros, while maintaining its "overweight" rating on the shares.
Two years after the acquisition of Talisman, the broker thinks that the Canadian independent oil producer's business remains misunderstood by the market and, as a result, undervalued.
However, Barclays is optimistic about the prospects of the Spanish energy firm's upstream division.
"With every quarter, evidence is growing of the free cash flow potential of the company with a restructured upstream business supported by a far more resilient than expected downstream segment," the broker says.
Also on the upstream division, Barclays points out that the business has shown a "remarkable turnaround" and is likely to prove more profitable than previously expected.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Two years after the acquisition of Talisman, the broker thinks that the Canadian independent oil producer's business remains misunderstood by the market and, as a result, undervalued.
However, Barclays is optimistic about the prospects of the Spanish energy firm's upstream division.
"With every quarter, evidence is growing of the free cash flow potential of the company with a restructured upstream business supported by a far more resilient than expected downstream segment," the broker says.
Also on the upstream division, Barclays points out that the business has shown a "remarkable turnaround" and is likely to prove more profitable than previously expected.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.