Repsol stock rating upgraded by JPMorgan on diesel market strength

Published 12/08/2025, 07:46
Repsol stock rating upgraded by JPMorgan on diesel market strength

Investing.com - JPMorgan upgraded Repsol SA (BME:REP) (OTC:REPYY) from Underweight to Overweight on Tuesday, raising its price target to EUR15.50 from EUR12.00.

The upgrade reflects JPMorgan’s view that Repsol is positioned as the "prime beneficiary of diesel market tightness into 2026" among European oil companies. The firm cited Repsol’s portfolio credentials as particularly advantageous in the current market environment.

JPMorgan highlighted Repsol’s "diesel superiority" as a key factor, noting the company has a top-tier 7% earnings-per-share sensitivity per $1 per barrel in refining margin. The company’s leading position comes from its more than 50% middle distillate (diesel/jet fuel) product yield.

The investment bank also identified Repsol as a leading beneficiary of widening crude price differentials induced by OPEC+ production changes. As OPEC+ accelerates tapering of voluntary cuts, more mid/heavy grade crudes will return to market, likely widening light-heavy price differences that Repsol can capitalize on through its high-complexity, coastal refining portfolio.

JPMorgan further noted Repsol’s refineries are expected to maintain high utilization rates through year-end, with maintenance activities primarily scheduled for the first half of 2025.

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