BofA Downgrades Equinor to Neutral on Limited Upside

BofA Adjusts Equinor Rating to Neutral

Bank of America has downgraded Norwegian energy company Equinor (EQNR) to a Neutral rating. Analysts noted that the stock's current price offers limited potential for further growth as it approaches their price objective of 260 Norwegian crowns.

Rationale Behind the Downgrade

The decision is supported by BofA's revised longer-term estimates for 2026 and beyond. Analysts led by Christopher Kuplent stated that the current valuation already accounts for long-term Brent oil prices around $70 per barrel, leaving little room for a significant re-rating of the stock.

Market and Estimate Outlook

BofA's updated 2026 estimates now assume oil prices below the current strip, indicating a more conservative outlook than company guidance. This adjustment suggests the bank sees no further upside for consensus estimates regarding Equinor's future performance.

Summary and Forward Look

With the downgrade to Neutral, investors may watch how Equinor's performance aligns with BofA's revised, more cautious long-term financial projections. The key factor remains the stock's valuation relative to long-term oil price expectations.

FAQ

Q: Why did Bank of America downgrade Equinor?
A: BofA downgraded Equinor to Neutral because its stock price is near the bank's 260 NOK price objective, offering limited upside. The bank also cut its long-term estimates, believing the current valuation is full.

Q: What is BofA's price objective for Equinor?
A: Bank of America's price objective for Equinor remains unchanged at 260 Norwegian crowns NOK.

Source: Investing.com