Update shared on09 Oct 2025
Fair value Increased 4.39%Analysts have raised their price target for Repsol from €14.45 to €15.08. They cite improved revenue growth, higher profit margins, and sector trends favoring companies with strong diesel exposure as key reasons for this change.
Analyst Commentary
Following the recent adjustments, analysts are weighing the factors that could shape Repsol's future performance, both positively and negatively. Their perspectives highlight several key points on the company's outlook and valuation.
Bullish Takeaways- Bullish analysts have raised Repsol's price targets, reflecting confidence in the company's improved growth prospects and enhanced earnings quality.
- Repsol's strong exposure to diesel refining is viewed as a strategic advantage. This positions the company to benefit from favorable sector trends and potential OPEC-driven market dynamics.
- Upgrades in ratings and target prices are attributed to the company's ability to act as a hedge against rising oil prices, which supports more robust financial performance.
- The expanded price target suggests expectations of continued operational execution and profit margin improvement relative to peers.
- Bearish analysts remain cautious that Repsol's growth is highly tied to external factors such as crude spreads and global oil price volatility. These factors could introduce downside risk to valuations.
- There is ongoing concern that despite recent momentum, shifts in regulatory or sector trends could diminish the diesel leverage that currently supports Repsol's outlook.
- Execution risks persist, particularly if the market environment becomes less supportive or the company fails to sustain recent margin improvements.
What's in the News
- Repsol has completed a buyback of 25,192,000 shares for a total of €300 million, representing 2.16% of share capital as part of its repurchase program announced on February 20, 2025. (Key Developments)
- Between April 1, 2025 and July 23, 2025, the company repurchased 18,892,000 shares for €225 million, accounting for 1.61% of total shares. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target has risen from €14.45 to €15.08, indicating upgraded expectations for the stock's fair value.
- Discount Rate has fallen slightly, moving from 9.15% to 8.86%. This reflects a modest decline in perceived risk or cost of capital.
- Revenue Growth assumptions have increased marginally, from 3.49% to 3.61%. This signals a more optimistic outlook for future sales expansion.
- Net Profit Margin is up slightly, from 4.98% to 5.03%, which points to expectations of improved profitability.
- Future P/E has risen from 6.30x to 6.44x. This suggests that the stock is now expected to trade at a modestly higher valuation on forward earnings.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.