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Investing.com - TD Cowen has lowered its price target on Equinor ASA (NYSE:EQNR) to $22.00 from $23.00 while maintaining a Hold rating on the stock. The energy giant, currently trading at $25.00 with a market cap of $63.2 billion, is showing signs of being undervalued according to InvestingPro analysis.
The price target reduction follows Equinor’s decision to participate in Ørsted’s rights issue with a $1 billion investment to maintain its 10% ownership stake in the company.
TD Cowen’s analysis suggests that forming a joint venture to move Equinor’s renewable spending off its balance sheet could potentially be more expensive than maintaining its current renewable assets.
The research firm expects Equinor’s stock to remain sensitive to global gas prices, which may remain elevated through the winter season.
TD Cowen’s third-quarter earnings per share estimate for Equinor falls below consensus, primarily due to an anticipated $1 billion non-cash mark-to-market adjustment on its Ørsted stake and approximately $0.1 billion lower earnings from Norway exploration and production operations.
In other recent news, Equinor ASA reported its second-quarter earnings for 2025, which presented mixed results for investors. The company’s earnings per share (EPS) came in at $0.64, slightly below the forecasted $0.65, resulting in a 1.54% negative surprise. However, Equinor exceeded revenue expectations, reporting $25.14 billion compared to the anticipated $24.06 billion, marking a 4.49% positive surprise. Meanwhile, Morgan Stanley downgraded Equinor from Equalweight to Underweight, adjusting the price target to $23.00 from $24.80. The downgrade was attributed to Equinor’s high sensitivity to fluctuations in oil and gas prices, given its focus on upstream activities without significant mid- and downstream operations. These developments provide a snapshot of the current financial and strategic position of Equinor ASA.
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