Repsol has capacity to deliver high capital distribution and better dividend growth than competition

Repsol novedad

Morgan Stanley| According to Repsol’s (REP) strategy plan for 2024-27, analysts not only see the company’s willingness to deliver a high capital distribution and dividend growth “better than the competition”, but also the ability to do so.

In this regard, they expect Repsol to generate an average FCF (post minority dividends) of €2.3bn per year, to be channelled into distributions, assuming an average value of €2.1-2.2bn over 2024-27e. In the near term, they further expect the stock to benefit from higher refining margins, which are significantly above expected YTD ahead of the historically strong second quarter (valuation made before Martijn raised its oil price target).

Repsol, Overweight, Target Price €18.50/share.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.