OMV confirmed at BUY, TP EUR 37.0 - 2020 should be more the exception than the rule
We remain bullish on OMV and keep our BUY recommendation, setting our new 12m target price at EUR 37.0 (EUR 57.0 before). We reckon that despite strong headwinds faced by oil companies (i.e. low oil and gas prices, weaker demand for crude oil and refined products), OMV is well prepared to withstand the pressure on earnings and continue implementing its long-term strategy without putting at risk the financial stability of the company. The recently announced purchase of an additional 39% stake in Borealis is a confirmation of OMVs strategy to reposition itself in the future low-carbon world by becoming a leading petchem player and gaining access to markets with long-term growth perspectives. The reconfirmation of its progressive dividend policy underlines the management confidence in having the operational and financial power to successfully navigate through the current oil market turmoil.OMV is an international energy company with activities in Exploration and Production (E&P), Refining and Marketing including petrochemicals (R&M), and Gas and Power (G&P). Co. explores and develops oil and gas resources and supply energy to over 100 million people. OMV has three operating segments: Exploration and Production (E&P), Refining and Marketing, including petrochemicals (R&M), and Gas and Power (G&P), as well as the segment Corporate and Other (Co&O).
The Institutional Equity Research team of Raiffeisen Bank International AG covers 85 stocks from Austria, Central & Eastern Europe with sell-side research and thus levers our local broker status with excellent company relationships. For corporates in Austria, CEE and Western Europe, we offer co-sponsored research, which includes research coverage and marketing activities to investors. Additionally, through our Spotlight Research product we also shed light on leading European small and micro-caps, seeking greater visibility with investors.
The Institutional Equity Research team consists of roughly 15 analysts, both in Vienna and the CEE countries. Our analysts provide long-standing sector expertise in tandem with profound local market know how and a sectoral approach across the entire region.
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