Morgan Stanley analyst Guilherme Levy upgraded the rating on GALP Energia SGPS to a Buy today, setting a price target of €16.50.
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Guilherme Levy has given his Buy rating due to a combination of factors that strengthen GALP Energia SGPS’s investment case. He sees the recent share price pullback after the Mopane farm-down as creating a more attractive entry point, with the stock now offering a free cash flow yield comparable to other leading European integrated energy names while trading at a discount to many peers. In his view, GALP’s robust balance sheet positions the company well to sustain, and potentially grow, shareholder distributions even if oil prices soften.
Levy also highlights several company-specific catalysts that could support outperformance versus other EU majors in 2026. These include the expected contingent payment from the Rovuma LNG project, additional risk-reduction milestones in Namibia at the Venus and Mopane assets, and the full production ramp-up of the Bacalhau project. With market expectations for Namibia already reset and limited value currently embedded in the share price for that region, he believes upside from further positive developments is skewed in investors’ favor. Combined with a lighter investment program in 2026–2027 that could free more cash for returns, these elements underpin his conviction in a Buy recommendation.