Galp: Oddo begins to monitor share
(CercleFinance.com) - Oddo has begun to monitor the Portuguese oil company Galp with a Neutral recommendation and a target price of 16.
5 uros.
Oddo says that Galp offers the strongest production growth in its sector thanks to its presence in Brazil, home to one of the best hydrocarbon sources in the world. However, in the near term, growth Capex will weigh on the group's FCF and on returns to shareholders, which investors are currently focusing on.
The broker adds that the share's valuation is less demanding than 18 months ago, although it is still trading at a premium to its sector and we identify few catalysts for a rerating in the near term. This explains its Neutral stance.
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.
5 uros.
Oddo says that Galp offers the strongest production growth in its sector thanks to its presence in Brazil, home to one of the best hydrocarbon sources in the world. However, in the near term, growth Capex will weigh on the group's FCF and on returns to shareholders, which investors are currently focusing on.
The broker adds that the share's valuation is less demanding than 18 months ago, although it is still trading at a premium to its sector and we identify few catalysts for a rerating in the near term. This explains its Neutral stance.
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.