Mizuho downgrades Talos Energy to Neutral after outperformance

Mizuho downgraded Talos Energy (TALO) to Neutral from Outperform with an unchanged price target of $11. Following the stock’s year-to-date outperformance, Talos is trading relatively in line with peers on 2026 multiples while offering only 13% upside to net asset value, below the 25% offered by some peers, the analyst tells investors in a research note. The company has made progress on its cash margin improvement initiatives, but the shares offer limited upside to reserves and potential risks from lower oil prices, the analyst tells investors in a research note.