At the beginning of the year, oil movements have a great impact on the Repsol oil company. Crude oil fell nearly 5% on Wednesday, after falling in the previous session, weighed down by concerns over the state of the global economy and weak demand due to rising COVID cases in China.
Both contracts fell more than 4% on Tuesday, with Brent suffering its biggest daily loss in more than three months. According to Jim Ritterbusch of Ritterbusch and Associates, “the energy complex is exacerbating yesterday’s sharp decline to start the new year on an extremely weak note,” adding that the COVID-19 cases in China have had a major impact on oil prices.
As noted Antonio Castello, iBroker Market Specialist, crude oil will continue to be between 80 and 100 dollars per barrel this year. As for Repsol, he says the stock has good fundamentals, contains debt and will continue to generate significant cash flow, allowing it to continue generating cash. “It is a good investment alternative.”
The analyst consensus gives you a buy recommendation, With a target price of €18.04, that gives it a potential upside of 24% in one year.
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