Eni upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley upgraded Eni to Overweight from Equal Weight with an unchanged price target of $39.60. Crude oil markets are tight now but likely to soften after Q3 as seasonal demand strength wanes and both OPEC and non-OPEC production growth resumes, the analyst tells investors in a research note. Given its commodity price forecasts, the firm sees 10% downside risk to 2025 consensus earnings and cash flow forecasts across the European energy sector. Morgan Stanley sees balance sheet improvement ahead for Eni and names the stock its new Top Pick in the group.