Bank of America Securities upgraded Equinor ASA to buy from neutral. Analysts raised the price target to 465 Norwegian kroner from 400. BofA Commodities Research expects European gas prices to average 95 euros per megawatt-hour this winter. This forecast is 20% higher than the current market strip.
BofA increased its free cash flow estimates for Equinor by 23% for the 2026-2027 period. The bank's 2027 free cash flow projection is 140% above the Visible Alpha consensus. Equinor may accumulate over $10 billion in net cash by the end of 2027.
BofA maintained its $4 billion annual buyback estimate. The projected cash surplus creates potential for increased shareholder returns.