EQNR Should I Buy
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Equinor ASA is not a strong buy at this moment for a beginner investor with a long-term strategy. While the stock has shown strong recent price momentum and positive technical indicators, the overbought RSI and declining financial performance suggest caution. Additionally, the lack of significant proprietary trading signals and neutral trading sentiment from hedge funds and insiders further supports a hold recommendation.
The stock is currently in a strong uptrend with bullish moving averages (SMA_5 > SMA_20 > SMA_200) and a positive MACD histogram of 0.658. However, the RSI_6 is at 93.956, indicating an overbought condition. The price is trading near resistance levels (R1: 40.331, R2: 42.836), which could limit further upside in the short term.
Recent oil discoveries in the Arctic Barents Sea and Norwegian Arctic, with production plans starting in Q1 2025, could boost long-term growth.
A non-cash asset swap with DNO enhances Equinor's position in the Norwegian Continental Shelf.
Declining financial performance in Q4 2025, with revenue down -4.67% YoY, net income down -34.17% YoY, and EPS down -28.77% YoY.
Overbought technical indicators (RSI_6 at 93.
suggest limited short-term upside.
Equinor's Q4 2025 financials show a decline in key metrics: Revenue dropped to $25.296 billion (-4.67% YoY), Net Income fell to $1.314 billion (-34.17% YoY), and EPS decreased to 0.52 (-28.77% YoY). Gross Margin also declined to 37.82% (-9.20% YoY).
Analyst sentiment is mixed. BofA recently raised the price target to NOK 345 but maintained a Neutral rating. Danske Bank and Pareto upgraded the stock to Buy with price targets of NOK 285 and NOK 280, respectively, citing improving cash flow. However, JPMorgan and Morgan Stanley maintain Underweight ratings, reflecting valuation concerns and pricing in $70 per barrel Brent in the long term.
