Equinor downgraded to Underperform from Sector Perform at RBC Capital

RBC Capital downgraded Equinor (EQNR) to Underperform from Sector Perform with a price target of NOK 260, down from NOK 300. The shares have performed resiliently over recent weeks amid the broader selloff as it is seen as the “gas story” in Europe, the analyst tells investors in a research note. However, RBC expects the combination of Equinor’s oil leverage and tax structure in Norway to drive “compressed” near term free cash flow and rising gearing, leaving its free cash flow and distributions “less compelling than peers.”