Mark Wilson, an analyst from Jefferies, maintained the Buy rating on GALP Energia SGPS. The associated price target is €21.00.
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Mark Wilson has given his Buy rating due to a combination of factors that highlight the potential value of GALP Energia SGPS’s investments and strategic decisions. One of the key considerations is the expected value realization from GALP’s Mopane discovery offshore Namibia, which is projected to be around $3 billion for its 80% stake. Although this is a reduction from a previous estimate of $5 billion, the change is attributed to a shift in the development approach to a bought-FPSO scenario, which increases initial capital expenditure but aligns with a more favorable long-term strategy.
Furthermore, Mark Wilson notes that GALP is trading at a premium compared to recent mergers and acquisitions involving companies like BG Group and Hess. This premium suggests that the market holds a positive outlook on GALP’s future performance and strategic positioning. Despite a 9% reduction in the price target to €21, the overall assessment remains optimistic, supporting the Buy rating due to the company’s strong potential for value creation and market confidence.
In another report released on December 1, RBC Capital also maintained a Buy rating on the stock with a €22.00 price target.