Galp Energia: BarCap maintains 'underweight' rating
(CercleFinance.com) - Barclays Capital (BarCap) reiterates its "underweight" rating on Galp Energia, despite upping its target price for the share to 18 euros, believing that the stock is trading at an average premium of 26% relative to its sector in Europe.
"Galp is one of the highest quality companies we cover, with a cash breakeven oil price below $50/bl this year and an upstream production base that continues to grow faster than peers," the broker says.
According to its estimates, BarCap believes that "this allows the company to increase dividends by at least 8% pa to 2021, while reducing net debt and having enough capacity on the balance sheet to further pursue acquisitions, if available."
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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.
"Galp is one of the highest quality companies we cover, with a cash breakeven oil price below $50/bl this year and an upstream production base that continues to grow faster than peers," the broker says.
According to its estimates, BarCap believes that "this allows the company to increase dividends by at least 8% pa to 2021, while reducing net debt and having enough capacity on the balance sheet to further pursue acquisitions, if available."
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.