Opinions
The Panic-Proof Portfolio (Stockchase Research)
Equinor ASA
EQNR-N
TOP PICK
Feb 13, 2025
Stock price when the opinion was issued
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EQNR engages in oil and gas exploration and marketing in the North Sea, focused on Norway. It also has a very active sustainability program, centred on wind farm renewables. It trades at 7x earnings, 1.3x book and supports a 20% ROE. It pays a robust dividend, backed by a payout ratio under 40% of cash flow. We recommend setting a stop-loss at $18, looking to achieve $28 -- upside potential of 24%. Yield 6.1%
(Analysts’ price target is $28.33)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%
(Analysts’ price target is $28.72)
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%
(Analysts’ price target is $29.49)