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TotalEnergies SE: Strategic Shift and Financial Resilience Support Buy Rating

TotalEnergies SE: Strategic Shift and Financial Resilience Support Buy Rating

Bank of America Securities analyst Christopher Kuplent reiterated a Buy rating on TotalEnergies SE (TTEResearch Report) today and set a price target of €66.00.

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Christopher Kuplent has given his Buy rating due to a combination of factors that highlight TotalEnergies SE’s financial resilience and strategic positioning. Despite a weaker cash conversion in the first quarter of 2025, Kuplent notes that the company’s balance sheet remains robust, with significant headroom that is being effectively utilized. This financial flexibility is expected to support the company as it navigates temporary working capital outflows, which are anticipated to reverse by the end of the year.
Furthermore, Kuplent emphasizes TotalEnergies’ strategic shift from traditional oil operations to a broader energy focus, which is reducing its breakeven oil price and creating additional value. The company’s renewable energy business is particularly noteworthy, contributing a substantial net present value that is not yet fully reflected in the current share price. Additionally, TotalEnergies’ free cash flow projections remain strong, outperforming consensus expectations, which supports the Buy rating despite recent adjustments to forecasts.

Kuplent covers the Energy sector, focusing on stocks such as Shell, Equinor ASA, and BP. According to TipRanks, Kuplent has an average return of -2.0% and a 43.10% success rate on recommended stocks.

In another report released today, Barclays also maintained a Buy rating on the stock with a €78.00 price target.

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