In a recent shift of outlook, Redburn Atlantic has downgraded Eni (E, Financial) from a Buy to Neutral recommendation. Analyst Peter Low cited a precarious oil market environment as the key reason for this adjustment, reducing the price target for Eni from EUR 17.50 to EUR 13.40.
The downgrade is primarily driven by concerns about an oversupply in the oil market, exacerbated by spare capacity and a weakening demand forecast. The firm anticipates that oil prices will fall below $60 per barrel by the end of the year, impacting their assessments of several key players in the energy sector.
In addition to adjusting its stance on Eni, Redburn has also downgraded other major oil companies, including Equinor and Chevron, both of which have been moved to a Sell recommendation. These decisions reflect a broader caution about the oil market's future amid these challenging conditions.
