In a report released yesterday, Mark Wilson from Jefferies maintained a Hold rating on TotalEnergies SE, with a price target of €57.00.
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Mark Wilson has given his Hold rating due to a combination of factors related to TotalEnergies SE’s strategic and financial outlook. The company’s strategy includes maintaining a 4% annual energy production growth target through 2030, which is supported by an anticipated increase in free cash flow by $10 billion from 2024 to 2030. However, this growth is accompanied by a need for $7.5 billion in additional cash savings, including a reduction in capital expenditures by $1 billion annually.
These cost-saving measures are intended to address macroeconomic uncertainties while still supporting a payout ratio of over 40%. The company plans to uphold its dividend commitments and conduct share buybacks of $0.75-1.5 billion per quarter at oil prices of $60-70 per barrel. Despite these positive aspects, the company’s strategy of maintaining a gearing ratio below 20%, but likely closer to 15%, suggests a cautious approach, which may have contributed to the Hold rating.
In another report released on September 25, Goldman Sachs also maintained a Hold rating on the stock with a €53.00 price target.