RBC Capital Markets adjusted its forecasts for Equinor (EQNR.OL) as it took into account the Norwegian energy company's recent strategic update, expecting increased oil volumes from Norway over the medium term.
In a Wednesday note, the research firm increased its EPS estimates by 2.9% for 2026, 10.4% for 2027 and 19% for 2028. Forecasts for net production and cash flow from operations were also raised over the three-year period.
"Equinor's strategic update outlined plans to continue growing its international upstream portfolio and sustain the Norwegian business, while low carbon spend looks set to remain much more modest than envisaged a few years ago. Underlying margins should improve as the mix shifts away from the [Norwegian Continental Shelf] towards International barrels, and this is supportive of higher FCF," analysts wrote. "We weigh this against our more cautious view on gas macro, and Equinor's relative valuation."
Analysts view Equinor as moving to "less extraordinary" times and a more "normal" balance sheet position after benefiting from a particularly strong cycle for European gas prices over the last few years.
The stock's underperform rating was retained, with a price target of 360 Norwegian kroner.