Total: UBS best pick in oil sector
(CercleFinance.com) - Oil stocks have fallen alongside increased market volatility and the collapse in oil prices - the price of Brent has been slashed in two in the space of three months.
However, amongst stocks that UBS covers, the broker believes that Total was the most resilient over the month of March (-8%).
"We have cut our macro oil price forecasts (details set out in a separate note) - cutting Brent for 2020E to $35.25/bbl from $41.50/bbl. We expect 2Q to be especially weak before recovery in 2H20. These changes, plus updates to the rest of the macro drive average EPS cuts of -68% in 2020 and -3.5% in 2021," UBS says in its sector comments.
"Our top picks (risk/reward) are Total and now BP in Europe and Chevron in the US."
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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.
However, amongst stocks that UBS covers, the broker believes that Total was the most resilient over the month of March (-8%).
"We have cut our macro oil price forecasts (details set out in a separate note) - cutting Brent for 2020E to $35.25/bbl from $41.50/bbl. We expect 2Q to be especially weak before recovery in 2H20. These changes, plus updates to the rest of the macro drive average EPS cuts of -68% in 2020 and -3.5% in 2021," UBS says in its sector comments.
"Our top picks (risk/reward) are Total and now BP in Europe and Chevron in the US."
Copyright (c) 2020 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.