Shell upped to overweight and BP lifted to equal-weight at Morgan Stanley

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Morgan Stanley upgraded Royal Dutch Shell to overweight from equal-weight, and BP to equal-weight from underweight, while it downgraded Equinor to equal-weight from overweight. Shell’s new financial framework and dividend policy send a strong signal about management’s confidence in the firm’s cash generating ability, the broker said. On Equinor, Morgan Stanley said the dividend hike has now materialized, and so its energy transition strategy, exposure to European gas prices and lack of exposure to refining are priced in. Following BP’s underperformance and its yield expanding to 8.1%, the broker said concern about its uncertain earnings and cash flow outlook also is priced in. The broker kept its overweight on Total and underweight on Eni .
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