TotalEnergies SE, the Energy sector company, was revisited by a Wall Street analyst today. Analyst Christopher Kuplent from Bank of America Securities reiterated a Buy rating on the stock and has a €62.00 price target.
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Christopher Kuplent has given his Buy rating due to a combination of factors, including TotalEnergies SE’s strategic adjustments and financial outlook. The company has recently revised its oil price outlook, reducing it by $10 per barrel into 2030, which impacts cash flow forecasts. However, this is counterbalanced by significant cuts in capital and operational expenditures, helping to maintain a steady free cash flow growth projection.
Moreover, TotalEnergies’ integrated power business is seen as undervalued, contributing less than 35% to the net present value, which suggests potential for future appreciation. The company’s updated cash flow forecasts for 2025 and 2026 are robust, outpacing consensus estimates. Additionally, TotalEnergies offers a competitive cash return yield and presents a rare opportunity for share price appreciation, with over 15% upside potential compared to its sum-of-the-parts valuation. These factors collectively support the Buy rating.
In another report released today, J.P. Morgan also maintained a Buy rating on the stock with a €58.50 price target.