27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
RBC Capital Markets analyst Biraj Borkhataria downgraded Equinor ASA (NYSE:EQNR) to Sector Perform from Outperform and cut the price target to NOK390 from NOK350.
The analyst says that EQNR looks set to re-lever its balance sheet faster than expected, suggesting more modest than anticipated 2024 distributions amid a subdued macro outlook and a lower commodity deck.
Also Read: Energy Giant Equinor's Q3 Earnings: Revenue & Profits Tumble Significantly On Weak Gas Production
Notably, Borkhataria updated the oil deck to $82.5/bbl Brent in 2024 (vs. $90/bbl earlier).
Also, the analyst expects potential negative earnings revisions for the company.
As per the analyst's updated oil deck estimates, Equinor will offer a single-digit FCF yield, with further pressure into 2025 due to lagged tax payments.
Also Read: Energy Sector Stocks Flush With Cash Amid Oil's Bear Market: Is There A Buy Signal In Sight?
Borkhataria expects shareholder distribution to step down, projecting ~$13.3 billion in 2024, reflecting a smaller special dividend and a share buyback of $5 billion (vs. $6 billion this year).
Consequently, the analyst estimates EBIT of $33.5 billion for FY24 and $29.4 billion for FY25, both around 10% below consensus.
Also Read: Equinor's Massive Gas Pact: Long-Term Deal With Germany's SEFE, Plus Hydrogen Partnership
Price Action: EQNR shares are trading lower by 0.49% at $31.56 on the last check Tuesday.
Photo via Company
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
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