JPMorgan Adjusts Equinor (EQNR) Price Target to NOK 260 Amid Neutral Outlook

JPMorgan analyst Matthew Lofting has revised Equinor's (EQNR) price target from NOK 270 to NOK 260, maintaining a Neutral rating. The average target price from 4 analysts is $24.08, implying a 6.22% downside from the current price of $25.68. Equinor's average brokerage recommendation is 2.8, indicating a "Hold" status. The estimated GF Value in one year is $23.92, suggesting a 6.84% downside from the current price.

JPMorgan analyst Matthew Lofting has revised Equinor's (EQNR) price target from NOK 270 to NOK 260, maintaining a Neutral rating. This adjustment comes as the company continues to navigate a challenging market environment, marked by geopolitical unrest and fluctuating energy prices.

Equinor reported strong financial results for the second quarter of 2025, with adjusted operating income of $6.5 billion before tax and an IFRS net income of $1.3 billion. The company's cash flow from operations after tax was robust at $9.3 billion, driven by strong operational performance and new fields coming online. Despite these positive indicators, the company's adjusted earnings per share was impacted by an impairment on its US offshore wind project, totaling $955 million.

The revised price target by JPMorgan reflects the market's cautious view on Equinor's valuation, with the average target price from four analysts standing at $24.08. This implies a 6.22% downside from the current price of $25.68. The average brokerage recommendation remains at 2.8, indicating a "Hold" status. The estimated GF Value in one year is $23.92, suggesting a 6.84% downside from the current price.

Equinor's financial performance has been bolstered by strong production growth in its US onshore operations and strategic progress in its international portfolio. The company has maintained a commitment to cost and capital discipline, with a flat cost development in the quarter and a firm CapEx guidance. However, the company's exposure to crude oil prices and natural gas markets in Europe poses significant risks to its ability to continue providing shareholder returns.

Looking ahead, Equinor's ability to manage its expenses and capitalize on opportunities in its renewables business will be crucial. The company has secured project financing for its Baltic 2 and 3 offshore wind farms in Poland, which supports double-digit equity returns. Additionally, the company's Empire Wind 1 project has resumed execution after a stop work order was lifted in May.

In conclusion, while Equinor's financial performance has been strong, the market's cautious stance on the company's valuation reflects the ongoing challenges it faces. Investors should closely monitor the company's ability to navigate these challenges and capitalize on its strategic opportunities.

References:
[1] https://seekingalpha.com/article/4804390-equinor-earn-double-digit-yield
[2] https://www.marketscreener.com/news/equinor-q2-2025-transcript-4b850b0ef0024c18d08f28291c12e181a1bb7f96-ce7c5fdad08efe25