(CercleFinance.com) – Oddo BHF confirms its Outperformance recommendation and its price target of 19.5E on the Repsol share.
‘Repsol is about to sell a significant part of its renewable energy portfolio’ notes the analyst quoting a Spanish newspaper.
According to this source, the group would sell 49% of a portfolio of wind and photovoltaic assets totaling a capacity of 600 MW for a valuation of 700 to 800 ME.
While divesting may seem counter-intuitive in relation to the group’s objectives, Oddo BHF thinks that the idea behind ‘is to further develop new, more lucrative projects, particularly in the USA where the group has bought 40% of Hecate Energy, with a option to raise capital and thus take full advantage of the IRA’ incentive program.
The fact remains, for the analyst, that Repsol presents one of the transition strategies ‘the most credible in the sector by allocating nearly 40% of its Capex to renewables with very good visibility thanks to the pipeline’.
For Oddo BHF, the group has ‘underperformed its peers this year following the fall in the price of gas and diesel’ but this should reverse towards the end of the year ‘with an expected drop in stocks’.
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