MARKET TALK: Nomura Ups European Integrated Oils To Bullish

14th Jun 2010 08:15

0715 GMT [Dow Jones] Nomura upgrades its view on European Integrates Oils to bullish from neutral, within which it reckons the strongest value opportunities look to exist around Repsol (REP.MC), Galp (GALPB.LB), Eni (EN.MI) and BP (BP.LN). Notes as a whole, the group has underperformed European equity markets by some 10% year-to-date, much of which has come in the past two months, driven by the BP spill and the fact large-cap oils have provided easy liquidity in the market sell-off. Nomura now sees 30% upside potential for the group. "We see near-term catalysts around positive earnings momentum (we are 13% and 18% above consensus FY'10 and FY'11 respectively), improving sector profitability and improving dividend cover." Has all four stocks mentioned at buy. Cuts BP price target to 593p from 760p, Eni target to EUR20.8 from EUR22.3p, and Repsol to EUR22.8 from EUR23.8. Keeps Galp price target at EUR15. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 14, 2010 03:15 ET (07:15 GMT)