Repsol: UBS maintains 'neutral' stance.
(CercleFinance.com) - UBS maintains a "neutral" stance on Repsol, with a target price of 15 euros, as the group's second-quarter results showed that its balance sheet continues to strengthen.
In a research note sent to clients, the brokerage firm points out that the Spanish energy company's net income came in at 496 million euros in the past quarter, 13% above consensus.
While UBS welcomes management's resilience and efforts to lower gearing, the broker thinks capital expenditures will likely need to rise a little to deliver the current projects and to address shareholder remuneration.
UBS nevertheless believes Repsol will stay cautious, with particularly great focus being placed on flexibility and modularity in new project launches.
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.
In a research note sent to clients, the brokerage firm points out that the Spanish energy company's net income came in at 496 million euros in the past quarter, 13% above consensus.
While UBS welcomes management's resilience and efforts to lower gearing, the broker thinks capital expenditures will likely need to rise a little to deliver the current projects and to address shareholder remuneration.
UBS nevertheless believes Repsol will stay cautious, with particularly great focus being placed on flexibility and modularity in new project launches.
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.