Repsol: Berenberg still a buyer after trading update

(CercleFinance.com) - Berenberg reinstates its "buy" rating and target price of 20 euros for the Repsol stock, after the Spanish oil and gas group's trading update prior to the publication of its Q3 results.


The broker has cut its EPS estimates by 3% for 2018, mainly due to lower production and slightly higher expected interest costs. However, the broker maintains its EPS estimates for 2019 and has raised them for 2020.

"The stock remains attractively valued, trading on 8.4x 2019E P/E, with a 5.5% dividend yield," Berenberg says, adding that Repsol is committed to increasing its dividend by 8% p.a. to reach one euro in 2020.



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