Repsol downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley analyst Sasikanth Chilukuru downgraded Repsol to Equal Weight from Overweight with a price target of EUR 15.20, down from EUR 17.70. 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. Falling interest rates and inflation further suggests that energy will likely lag the upside Morgan Stanley sees for the European market, the firm contends.