(CercleFinance.com) – The stock ended the session up nearly 7%. RBC raised its opinion on Repsol shares on Tuesday from ‘performance in line with the sector’ to ‘outperformance’, with a price target raised from 17 to 19 euros.
In a research note, the Canadian broker estimates that the Spanish energy group could be one of the main beneficiaries of the tensions currently encountered in the market for distilled products.
The broker points out that Repsol is the integrated group with the most exposure to the refining sector, where its margins are particularly high, a situation which could support its results as the Brussels embargo on Russian oil is soon to come into force.
According to RBC, the group’s refining margins in 2023 could be “significantly higher” than those of the 2022 financial year, which had already emerged at high levels.
The broker adds that the desire displayed by the management team to reduce the number of shares in circulation and to increase the dividend could also contribute to reassuring the market.
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