Repsol receives upgraded price target from Berenberg

Berenberg has raised its price target for Repsol to 37.50 euros, suggesting a potential upside of approximately 28% to 31% from recent trading levels. This upgrade follows a period of significant growth for the Spanish oil company, which has seen its share price increase by nearly 80% so far this year.

Analysts attribute this optimism to exceptional refining margins, particularly driven by diesel prices that are substantially higher than previous forecasts. The report notes that supply shocks, including reduced production flows due to conflict in Iran and limited refinery availability in Russia, are expected to keep margins healthy through the second half of the year.

Additionally, Berenberg anticipates that increased operating cash flow will support a more aggressive share buyback program than currently estimated by the market consensus. The company is expected to confirm its buyback plans for the remainder of the year in October.