Equinor shares suffered the biggest drop in the pan-European Euronext 100 index on Tuesday morning, penalized by a recommendation downgrade by RBC.

The Canadian bank's analysts downgraded their recommendation to 'in-line performance' from 'outperform', with a price target reduced from NOK 390 to NOK 350.

At around 10:00 a.m., the stock was losing 1.5%, underperforming the European energy sector index, the STOXX Europe 600 Oil & Gas, down 0.5%.

RBC analysts fear that, in view of the economic slowdown and low commodity prices, the Norwegian oil company will redistribute less cash to its shareholders next year.

Adding the prospect of possible downward revisions to its earnings estimates, the Canadian establishment explains that it perceives a 'more balanced' risk/earnings potential at this stage.

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