The Panic-Proof Portfolio (Stockchase Research)Equinor ASAEQNRTOP PICKDec 19, 2024

As members of the US Administration expect a continuation of high energy prices for the foreseeable future, we reiterate EQNR as a TOP PICK.  Shipments thru the Strait of Hormuz remain challenged leaving domestic producers in a good position to see cash flows continue to improve.  The company is tightly connected to the European market, providing security of supply.  It trades at 20x earnings, 2.4x book and supports a ROE of 12%.  We recommend trailing up the stop (from $30) to $33, looking to achieve $45 -- upside potential of 18%.  Yield 3.8% 

Our PAST TOP PICK with EQNR is progressing well. To remain disciplined we recommend trailing up the stop (from $27) to $30 at this time.  

Our PAST TOP PICK with EQNR is progressing well.  To remain disciplined, we recommend trailing up the stop (from $24.50) to $27.00 at this time. 

Our PAST TOP PICK with EQNR has achieved its target at $29.00.  To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $22.00) to $24.50.  

We reiterate this Norwegian based North Sea energy producer as a TOP PICK.  The importance of energy security in Europe has never been greater and EQNR is well positioned.  It trades at 7x earnings, under 2x book and supports a 20% ROE.  Management is prudently using cash reserves to aggressively buy back shares and retire debt.  We recommend maintaining a tight stop at $22, looking to achieve $29 — upside potential over 20%.  Yield 4.8%

We reiterate EQNR, a North Sea energy producer based in Norway, as a TOP PICK.  Management sees 250-350 incremental LNG cargoes being required this year to make up for depletion of commercial and strategic reserves in Europe.  The stock trades at 7x earnings, 1.4x book and supports a ROE 0f 19%.  The robust dividend is backed by a payout ratio under 30% of cash flow.  We recommend trailing up the stop (from $18) to $22, looking to achieve $29 -- upside potential of 23%.  Yield 5.6%