Christopher Kuplent, an analyst from Bank of America Securities, reiterated the Buy rating on TotalEnergies SE. The associated price target was raised to €66.00.
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Christopher Kuplent has given his Buy rating due to a combination of factors that make TotalEnergies SE an attractive investment. A key reason is the company’s low breakeven oil price, which is expected to decrease further, enhancing its financial resilience against potential downturns in oil prices. This positions TotalEnergies favorably compared to its peers, as it is discounting a long-term Brent oil price significantly lower than the industry average.
Moreover, TotalEnergies is projected to experience substantial free cash flow growth over the next few years, driven by its Integrated Power business, which is transitioning from being a financial drag to a major contributor to cash returns. The company’s strategy to increase cash returns without relying on higher oil prices, coupled with its focus on low-carbon initiatives, further strengthens its investment appeal. These factors, combined with a favorable valuation and potential for significant buyback upside, underpin Kuplent’s positive outlook on the stock.
In another report released on December 3, UBS also maintained a Buy rating on the stock with a €62.00 price target.