HSBC fuels Repsol's 100% rally

HSBC boosts Repsol's rally to surpass 100% revaluation

Repsol's stock, the star of the year on the Ibex index, receives support from HSBC analysts to extend its rally that has exceeded 100% revaluation since January. Repsol holds the top spot in the ranking of the most bullish stocks of the year on the Ibex. At yesterday's closing, it had a 109% revaluation, almost doubling the second-highest increase of the index, the +59% of ArcelorMittal.

The steepness of this rally does not intimidate analysts, as evidenced by the 27% improvement issued today by HSBC. The British bank has raised its price target, from 29 to 37 euros per share, 12 months ahead. This new valuation represents an additional bullish potential of 17% compared to the 31.54 euros with which the company's shares closed yesterday on the Ibex.

HSBC's optimism falls short of the current record valuation for Repsol. According to data compiled by LSEG, the 37 euros issued today by the British firm represent the third highest price target among the 27 currently in place. At the forefront of this bullish ranking are two valuations of 38 and 37.5 euros per share. Repsol's bullish catalysts intensify with the oil price installing again above 100 dollars per barrel.

In the first nine days of September, the Ibex company received eight valuation upgrades from analysis firms, according to LSEG data. The best are extendable to recommendations on the value. This same month, Barclays analysts raised their recommendation on Repsol, appreciating the attractive combination of resilience in the refining business, growth in upstream, and shareholder return.

As of today, with the company having surpassed 100% revaluation this year, the market consensus debates whether to continue buying or maintain the investment in Repsol. Of the 27 firms covering the value, 14 recommend buying its shares, 11 propose maintaining the investment, and the remaining two suggest selling.