Jefferies Downgrades Repsol (REP) to Underperform

Jefferies downgraded Repsol YPF, S.A. (NYSE: REP) from Hold to Underperform with a EUR9 price target.

Analyst Jason Gammel commented, "REP is 21% above our €9.00 PT. The stock trades on 6.1x 2017e EV/DACF which is a 14% premium to EU IOC peers. In our view this premium is unjustified given REP’s high indebtedness with end-2017 gearing expected to be 4pp above peers and end-2016 ND/EBITDA of 2.5x. While good progress has been made on recent divestitures we believe the risk-reward is skewed to the downside. There is no dividend policy after the recent 40% cut to the balance of the 2015 dividend. Upgrades to FY16 EPS are due to overly conservative 1Q16 est. prior to last week's trading statement."

For an analyst ratings summary and ratings history on Repsol YPF, S.A. click here. For more ratings news on Repsol YPF, S.A. click here.

Shares of Repsol YPF, S.A. closed at $33.46 yesterday.

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