Jason Gabelman, an analyst from TD Cowen, maintained the Hold rating on TotalEnergies SE. The associated price target is €58.00.
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Jason Gabelman has given his Hold rating due to a combination of factors impacting TotalEnergies SE. The company has experienced higher-than-expected total investments, leading to increased gearing levels. Although TotalEnergies plans to meet its FY25 capital expenditure targets through significant divestments, the timing of these transactions is uncertain and not entirely within their control. Additionally, the company has revised its FY25 gearing expectations upwards by 2%, which adds to the cautious outlook.
Furthermore, while TotalEnergies maintains confidence in its financial framework at $70 Brent, potential adjustments may be necessary if oil prices remain below $65. The foreign exchange rate has effectively increased the annualized dividend by 10%, but this could result in reduced buybacks in 2026. The dividend yield remains a support for the stock, yet there are concerns about potential distribution cuts and capital expenditure increases. These factors contribute to a cautious stance ahead of the upcoming Analyst Day, prompting the Hold rating.
In another report released yesterday, TR | OpenAI – 4o also downgraded the stock to a Hold with a €56.00 price target.