AlphaValue/Baader Europe Updates Repsol Rating on Refining Margins Boost

10:10 AM EST, 12/03/2025 (MT Newswires) -- AlphaValue/Baader Europe changed its rating on Repsol (REP.MC) amid higher earnings expectations on the back of an increase in refining margins over the 2025 to 2027 period, despite lower Brent assumptions. The research firm changed its opinion on the Spanish energy company's stock to reduce from sell on Wednesday, with a price target of 17.6 euros. "The re-rating is driven by the sharp upward revision in refining margins, which increase from 6 to 7.9 in 2025, from 5.5 to 7 in 2026, and from 5 to 6 in 2027. These higher margin levels directly lift Industrial EBIT and strengthen the value generation of the refining assets," analysts wrote. EPS forecasts were also raised by 17.4% for 2025 and 8.59% for 2026 to 2.47 euros and 2.55 euros, respectively, while the estimated EBITDA growth edged down to 1.4% from 1.5% following the projection period.