Why Equinor Stock Tumbled by 5% on Tuesday
The market drained the energy from energy stock (NYSE: EQNR) on Tuesday. Rather than movement on company news, the Norwegian oil and gas major took a hit when an analyst tracking its stock cut his price target. By the end of the day's trading session, Equinor's share price had withered by almost 5%, comparing unfavorably with the relatively modest 2.2% decline of the S 500 index.
The person behind the reduction was JPMorgan Chase pundit Christyan Malek. Well before the opening of the U.S. market, Malek lowered his Equinor price target by 10 Norwegian kroner ($9) to 250 kroner ($24). As he did so, he maintained his underweight (sell, in other words) recommendation on the energy stock.
The reasoning behind Malek's move wasn't immediately apparent. However, it's not the first such adjustment by an analyst in recent days. This past Friday, Malek's peer Martijn Rats at Morgan Stanley also got more bearish on Equinor's future.
Source Fool.com
