(CercleFinance.com) – Equinor shares rose sharply on the Oslo Stock Exchange on Wednesday and made a major contribution to the rise in the OSEBX index after RBC’s decision to raise its recommendation on the stock.
In a note sent to its clients, the Canadian broker now indicates that it is displaying an “outperformance” opinion on the title of the Norwegian energy group, against “performance in line with the sector” so far.
Its target price remains unchanged at 390 crowns.
RBC notes that Equinor stock has underperformed its major peers year-to-date due to the normalization of European gas prices from their exceptionally high 2022 levels.
The broker stresses, however, that the strength of the group’s balance sheet, as well as its cash position, should enable it to maintain its shareholder remuneration policy next year at the same levels as this year.
This prospect means, according to its calculations, that the company should redistribute to its shareholders the equivalent of almost 40% of its market capitalization over the period 2023-2024.
On the Oslo Stock Exchange, the title Equinor climbed 3.7% on Wednesday, signing the strongest progression of the OSEBX index, itself up 1.6%. Its share price has lost another 8% since the start of the year.
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