Morgan Stanley analyst Bruno Montanari maintained a Hold rating on YPF Sociedad Anonima yesterday and set a price target of $38.00.
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Bruno Montanari has given his Hold rating due to a combination of factors surrounding YPF Sociedad Anonima’s current strategic positioning and external economic conditions. The company’s management has conveyed a message of strategic continuity despite macroeconomic and political discussions taking precedence. This stability is attributed to the strategic importance of oil exports to Argentina’s economy, which is unlikely to face significant policy changes.
However, potential adjustments to YPF’s investment plans are contingent on fluctuations in oil prices or drastic changes in the country’s institutional framework. While the company is mostly funded for the year, the recent acquisition from Total requires additional financing. Moreover, the company’s focus on developing its Vaca Muerta oil reserves and the construction of LNG capacity remains strong, but the pace of capital contributions may be altered in adverse scenarios. Despite a promising outlook for shale production, the negative free cash flow remains a concern for investors, warranting a cautious Hold rating.
According to TipRanks, Montanari is ranked #2505 out of 10012 analysts.