MS cuts Repsol to 'equal-weight' as refining margin should fade into 2H26

** Morgan Stanley downgrades Repsol REP to "equal-weight" from "overweight" as the broker sees case for spreads normalising post-1Q26 as temporary drivers (such as the Dangote outage) start to fade

** It also sees limited upside to valuation for the Spanish energy company with a recent rally connected with a refining margin upward in Q3, that is expected to fade into 2H26

** "Still see some positive drivers that prevent us from being more negative at this point, such as the company's exposure to US gas and the upcoming E&P segment liquidity event", adds MS

** The broker prefers Shell SHEL and Total TTE to play Integrated Energy in Europe

** Out of 28 analysts that cover Repsol SA, 11 rate the stock "strong buy" or "buy,"​ 15 "hold" and two​ rate the stock "strong sell" or "sell" - LSEG data