Total: Berenberg initiates coverage with 'buy' rating
(CercleFinance.com) - In a sector report entitled "The Stars Are Aligning," German broker Berenberg has begun monitoring eight oil and gas “majors.
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Total is one of its best picks, with a buy rating and a target price of 65 euros, which represents 25% upside potential.
In general, analysts point out that the reduction in the costs of oil majors comes alongside growth in production and higher hydrocarbon prices. The report says that this should lead to the sharpest increase in free cash flow in the sector since 2006/2007.
In this context, Berenberg highlights Total, BP and Repsol in the sector. The broker has a buy rating on Total (...), because of its robust growth and the strongest generation of free cash flow in the sector, analysts argue. It highlights other points, including the weakness of the debt and potential surprises in terms of share buybacks.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
”
Total is one of its best picks, with a buy rating and a target price of 65 euros, which represents 25% upside potential.
In general, analysts point out that the reduction in the costs of oil majors comes alongside growth in production and higher hydrocarbon prices. The report says that this should lead to the sharpest increase in free cash flow in the sector since 2006/2007.
In this context, Berenberg highlights Total, BP and Repsol in the sector. The broker has a buy rating on Total (...), because of its robust growth and the strongest generation of free cash flow in the sector, analysts argue. It highlights other points, including the weakness of the debt and potential surprises in terms of share buybacks.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.