Equinor's Grid Storage Push Draws Analyst Target Tweaks

Equinor ASA is expanding into utility-scale battery storage, a move that is drawing analyst coverage. Berenberg lowered its price target on the stock to NOK 320 from NOK 365 on June 22, maintaining a Hold rating. A few weeks earlier, on June 5, TD Cowen raised its target to $42 from $40, also with a Hold. Cowen analyst Jason Gabelman cited Equinor's Capital Markets Day as a positive catalyst and forecast the company's 2026 share buyback program to rise from $1.5 billion to $4 billion.

Short interest stands at 0.89% of shares outstanding, a level that suggests limited bearish positioning. The low figure reflects a market still weighing Equinor's dual identity as an oil producer and a growing energy storage operator.

Equinor's battery storage business came together through acquisitions. It bought East Point Energy in 2022 and later took a stake in Noriker Power. Both companies develop Battery Energy Storage Systems that store surplus wind and solar power for later grid delivery. The sector is growing fast as renewable buildout accelerates and grid operators seek flexible capacity to manage intermittent generation.

The readthrough for commodities is clear. More utility-scale storage means rising demand for lithium, cobalt and other battery metals over the next decade. Miners and processors of those materials stand to benefit from a steeper demand curve, even if the path is lumpy. Equinor's capital allocation into BESS validates the business case for storage at scale, which puts pressure on independent storage developers to either grow quickly or get bought.

Equinor's Alpha Score from AlphaScala is 51 out of 100, labelled Mixed. The score reflects the uncertainty around the transition timeline and the heavy spending required to build out non-oil revenue streams. By contrast, Nokia Corp, which participates in grid-modernization through its telecom equipment, scores 74, labelled Moderate. The gap highlights how energy transition plays carry more execution risk than established technology businesses.

Cowen's Gabelman said the Capital Markets Day shifted his view on the buyback trajectory. The increase to $4 billion in 2026 would be a threefold rise over the current programme, he noted. For investors tracking the storage theme, the question is whether that buyback and the BESS growth can shift the mixed label toward a positive score in coming quarters. Equinor's next buyback guidance update is expected later this year.