Bank of America Securities upgraded Equinor (EQNR) to a "Buy" rating. The firm previously rated Equinor "Neutral." BofA also raised Equinor's price target to 465 Norwegian kroner. The previous target stood at 400 Norwegian kroner.
BofA primarily attributes the upgrade to an improved outlook for European natural gas prices. The bank's research team forecasts winter prices more than 20% above the current market strip.
Following the revised gas price forecast, BofA increased Equinor's free cash flow estimates. The bank raised these estimates by 23% for the 2026-2027 period. Analysts at BofA now project Equinor could end 2027 with over $10 billion in net cash.
The firm also lifted its earnings per share forecast for Equinor to $5.54. This forecast applies to 2026.