Deutsche Bank Warns, Energy Stock “Valuations Are Unsustainable” Unless Crude Hits $70 By 2H15

by Tyler Durden
ZeroHedge.com
02/11/2015

We previously noted the extreme spike in S&P Energy sector stock valuations (and the fact that energy sector earnings will have to surge by 70% in order for this exuberant to be ‘discounted’ correctly). Now Deutsche Bank has run the numbers and warns that in order for S&P Energy to now be trading at what we would consider a fair ~15x normalized EPS, $70/bbl oil must return and be sustained by 2H15.

The Rest…HERE

This entry was posted on Wednesday, February 11th, 2015 at 1:23 pm and is filed under Economics, Oil. You can follow any responses to this entry through the RSS 2.0 feed.