Bank of America Securities analyst Leonardo Marcondes reiterated a Buy rating on Vista Oil & Gas SAB de CV yesterday and set a price target of $75.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Leonardo Marcondes has given his Buy rating due to a combination of factors including Vista Oil & Gas’s strong production growth and strategic acquisitions. The company’s recent consolidation of PEPASA and the increased stake in LACh have significantly boosted production levels, with a notable increase in both oil and natural gas outputs. This expansion aligns with the company’s growth profile and positions it well within the Vaca Muerta region, known for its potential in the energy sector.
Despite a negative free cash flow to equity in the short term, largely due to working capital consumption and tax payments, Marcondes remains optimistic about Vista’s future. The elimination of trucking expenses and the company’s ability to maintain competitive lifting costs are seen as positive operational efficiencies. Furthermore, the management’s proven track record and alignment with shareholder interests add to the confidence in Vista’s long-term prospects, justifying the Buy rating.
Marcondes covers the Energy sector, focusing on stocks such as Vista Oil & Gas SAB de CV, YPF Sociedad Anonima, and Ultrapar Participacoes SA. According to TipRanks, Marcondes has an average return of -2.2% and a 45.00% success rate on recommended stocks.