Deutsche Bank keeps BP and Shell at ‘buy’

Analysts at Deutsche Bank lowered its target prices for most European oil and gas firms, although Shell and BP fared better.
In a research note sent to clients, James Hubbard downgraded his recommendation on shares of OMV from ‘buy’ to ‘hold’ while slashing his target from €64.0 to €44.8.

TotalEnergies was also downgraded from ‘buy’ to ‘hold’ and its target cut from €53.5 to €48.1.

However, he continued recommending ENI, Repsol, BP and Shell.

Eni’s target price was raised from €14.7 to €14.9 and that for Repsol from €14.2 to €15.9.

BP’s target price was trimmed, from 455.0p to 450.0p, but that on Shell was hiked from 2,038.0p to 2,551.0p.

According to Hubbard, on inventories alone, a price of $90 per barrel of Brent was justified, so that $20 per barrel of the actual price was the result of a risk premium due to the uncertainty around the war in Ukraine.

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