DB Slashes Energy Sector Profit Estimates As Oil Goes Down

Deutsche Bank analysts cut their 2017E Energy sector profits from $60 billion to $48 billion in line with their revised assumption that oil prices average $50-55/bbl in 2017 as against $60/bbl previously. David Bianco and colleagues said in their August 5 research piece titled “2017E S&P EPS cut from $130 to $128, 2017 end target remains 2350” that they lowered their estimate for cost of equity by 25bp at all sectors, except Financials, Con Dics, Telecom. Energy & Financials contribute most of 2017E S&P EPS cut Bianco and team point out that renewed oil price weakness indicates that rebalancing the global…