Analyst Jason Gabelman of TD Cowen maintained a Hold rating on TotalEnergies SE, with a price target of €58.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Jason Gabelman has given his Hold rating due to a combination of factors influencing TotalEnergies SE’s financial outlook. The company is expected to announce a $4 billion buyback for fiscal year 2026, which is below the market consensus of approximately $6 billion. This anticipated reduction in buybacks, alongside a capex forecast of $17 billion annually, has contributed to concerns about the company’s financial strategy.
Additionally, TotalEnergies has underperformed compared to its European peers, with its dividend yield being notably cheaper. Despite expectations of stable or improved capex and increased cash flow from new projects starting in the coming years, there is uncertainty about how investors will react to a potentially weak free cash flow year in 2026. The company’s financial performance has been impacted by missing cash flow guidance and higher-than-expected gearing, further justifying the Hold rating as investors await clearer developments in 2026.
In another report released today, Exane BNP Paribas also downgraded the stock to a Hold with a €53.00 price target.