RBC expects energy markets to remain tight in 2023, saying an uncertain investment outlook and market intervention are likely to do more harm than good for investment levels.
The broker estimates EPS moderately ahead of consensus (about +13% on average) next year, with refined products potentially driving material earnings revisions.
RBC prefers “outperform”-rated Repsol and ups its target price by 5% to 20 euros, pointing to the company’s 40% cash flow from operations not strictly allocated to dividends, capex or buybacks.
Shell and BP are its other preferred names in the sector, thanks to their stable capex numbers.