The price of listed oil fell last Tuesday to place the barrel of Brent, the benchmark in Europe, below the $69. And this has weighed down companies in the sector such as Repsol. It value within the Ibex 35 registered last Tuesday a price lower than 11.5 euros which was the entry price set by The elEconomista.es portfolioWith this operation, the strategy takes its second position in Repsol with the possibility of averaging in the event of a possible rebound in the company’s stock.
When The wallet considered doubling its position in Repsol, the integrated oil company had to fall by almost 8% before reaching the set entry price. And only two weeks later, this circumstance occurred. Now, the idea of seeking targets in the field of 17 euros which coincides with the market consensus price target collected by FactSet and which would imply a profitability of 45% on this second position (18% with the position started previously at 14.32 euros). However, it is not excluded to close a position on Repsol once the losses are covered by this value in the strategy.
Although Repsol still has a buy recommendation, according to FactSet and based on the criteria of elEconomista.es which divides expert opinions between buy, hold and sell, the oil price expectations They do not inspire confidence in a rapid recovery in prices in the short term. In fact, some analyst firms even predict that the Brent at $60 in early 2025in the most apocalyptic scenario. And a drop in the price of oil reduces the refining margins of most integrated oil companies and, therefore, their profits and profit margins.
