TotalEnergies: Jefferies downgrades stock

(CercleFinance.com) - On Wednesday Jefferies downgraded TotalEnergies shares to "hold" (from "buy"), while reducing its target price from E69 to E65.


In its report on the European oil sector, the analyst explains that the French group's high exposure to spot gas and LNG prices makes it particularly vulnerable to a deterioration in the market by 2025.

The broker also praises the French energy group's solid balance sheet, which has enabled it to post a "record" track record in terms of shareholder remuneration, but considers that the prospect of high levels of investment in 2024 and 2025 risks limiting its financial leeway.

Finally, it adds that the group's tendency to make acquisitions, particularly in the renewable energies sector, could weaken the amount of cash available for shareholders.


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