RBC Capital Markets adjusted its earnings forecasts and price target for Equinor (EQNR.OL) following the Norwegian energy company's "strong" trading results in the first three months of the year.
Analysts on Wednesday revised estimates to reflect the first-quarter performance and the latest outlook, with RBC's production growth forecast of 5% above management's 3% guidance. The research firm added that its model now incorporates "cash tax smoothing," anticipating Equinor would use the "enormous" pre-tax tailwind to settle additional taxes in the second half of 2026.
Against this backdrop, RBC lowered its price target to 360 Norwegian kroner from 380 kroner, and reiterated its underperform rating, noting the company's shares suggest a "more optimistic" macroeconomic scenario compared with other companies in the industry.
"A robust quarter, but unfortunately reporting on the wrong day. Equinor's share price reaction today was more driven by de-escalation headlines than anything in the release, with the company reporting record production and a beat across multiple divisions. We continue to see question marks over Equinor's 10% holding in Ørsted [ORSTED.CO], with the company recently deciding not to nominate a board member. We expect clarity with the upcoming [capital markets day] in June. While this remains a relatively small part of the overall investment case, it speaks to the broader capital allocation strategy and its plans for offshore wind," the note said. The Oslo-listed stock was down over 8% at Wednesday's close.