Equinor (NYSE: EQNR) Faces Downgrade Amid Valuation Concerns and Strategic LNG Expansion

• Investment firm Santander downgraded Equinor (NYSE: EQNR) to Neutral, citing a cautious outlook on its near-term growth potential.
• The energy stock appears overvalued, with its price trading 26.6% above its estimated fair value (GF Value).
• Despite the downgrade, Equinor is actively expanding its global liquefied natural gas (LNG) capacity and executing a significant share buyback program.

Equinor is a major Norwegian energy company where the state is the majority owner. This global energy firm operates across the oil and gas, and renewable energy sectors. Equinor is actively expanding its global footprint, especially in the liquefied natural gas (LNG) market, where it competes with other large energy corporations in the global energy sector.

On September 22, 2026, the financial institution Santander downgraded its rating on Equinor to Neutral from a previous Outperform rating. At the time of this stock rating change, the stock was priced at $42.49. This new rating suggests a more cautious view of the stock's potential for near-term growth and impacts its investment outlook.

This neutral outlook may be influenced by the stock's valuation metrics. As highlighted by GuruFocus, Equinor's price of $44.20 on September 16 was 26.6% above its GF Value of $34.92. The GF Value is an estimate of a stock's fair price, which indicates the energy stock may be overvalued at its recent trading levels.

While analysts adjust their ratings, Equinor is executing a share buyback program. This is when a company buys its own shares from the market to return value to shareholders. Between September 14 and 18, the company purchased 535,701 of its own shares at an average price of NOK 419.46. This corporate finance strategy aims to boost shareholder returns.

In its business operations, Equinor continues to expand its global LNG capacity. The company recently secured a long-term LNG supply agreement with Thailand's PTT Trading. This strategic move strengthens Equinor's presence in the growing Asian energy market and is part of its strategy to increase its global LNG capacity in the coming years, reinforcing its position in the international energy market.