Market Overview

UPDATE: Deutsche Bank Downgrades Statoil to Hold on Relative Valuation

Related STO
TOTAL Earnings Beat Estimates, Down Y/Y on Lower Prices
Markets In Rally Mode: S&P 500 And Nasdaq Surge As Dow Lags

Deutsche Bank reduced its rating on Statoil (NYSE: STO) from Buy to Hold and stated the stock is relatively expensive compared to its sector peers.

Deutsche Bank commented, "Solid results at the operating level, albeit again highlighting the challenges of accurately modelling the quarterly financial impact of rapid growth in the international business. Statoil is not an expensive stock (38% discount to NAV), but trading at 8.7x 2013e PE neither is it cheap relative to a sector on 7.5x. With a period of exceptionally strong production momentum drawing to a close before accelerating in 2015, we worry that material incremental exploration success is required to prevent the relative rating coming under pressure. Achievable given an active "high-impact" drilling programme, but suggestive to us that share price risk is increasing."

Statoil closed at $24.28 on Monday.

Latest Ratings for STO

DateFirmActionFromTo
Nov 2014NomuraDowngradesNeutralReduce
Nov 2014JP MorganDowngradesOverweightNeutral
Oct 2014CarnegieUpgradesSellHold

View More Analyst Ratings for STO
View the Latest Analyst Ratings

Posted-In: Deutsche BankAnalyst Color Downgrades Pre-Market Outlook Analyst Ratings

 

Related Articles (STO)

Around the Web, We're Loving...

Get Benzinga's Newsletters