Total: Oddo BHF maintains 'buy' rating
(CercleFinance.com) - Oddo BHF reiterates its "buy" rating on the Total stock, along with its target price of 60 euros, perceiving the group as "one of the big winners of the current cycle," following its roadshow held last week with the oil and gas group's management .
In particular, the broker points out that Total has made quality acquisitions at very attractive prices and that its high FCF generation will be used to further reduce its indebtedness in order to benefit from the next cycle and improve the return to shareholders.
"The share's valuation remains very attractive compared to peers, trading at a discount of 5% in terms of P/E and a slight premium of 4% in terms of P/CF, which has been stable for two years and which does not reflect the improvement in the group's profitability, the analyst adds.
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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.
In particular, the broker points out that Total has made quality acquisitions at very attractive prices and that its high FCF generation will be used to further reduce its indebtedness in order to benefit from the next cycle and improve the return to shareholders.
"The share's valuation remains very attractive compared to peers, trading at a discount of 5% in terms of P/E and a slight premium of 4% in terms of P/CF, which has been stable for two years and which does not reflect the improvement in the group's profitability, the analyst adds.
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.