Total: UBS a buyer ahead of strategic day

(CercleFinance.com) - In a note published this morning, UBS analysts confirm their buy rating on the Total share, ahead of the group's strategic meeting next week.
They maintain their 12-month target price at 62.5 euros, suggesting upside potential of around 14%.

Unlike previous editions, Total's annual investor day will be held in New York this year and not London, on 25 September. As usual, the group will provide an update on its strategy and outlook, with a focus on deep-sea deposits and liquefied natural gas (LNG), two topics that are currently being closely followed.

What does UBS expect from the day? Not much new actually; analysts believe that investor days are rarely marked by the presentation of new catalysts. “And indeed, by definition, strategy should be consistent. Furthermore, Total performance and delivery have been very competitive, so why change?” the broker's report says.

Although the event may be an opportunity to take stock of investments, which UBS believes could be increased - although not excessively - and the discipline of capital allocation. The presentation on LNG could also be interesting after the group's major acquisition from Engie.

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