TotalEnergies: up, an analyst's opinion on the stock

(CercleFinance.com) - TotalEnergies gains more than 1% in Paris as Oddo BHF confirms this morning its 'outperform' rating on the stock, with an unchanged target price of 72 euros.


The broker reports that 3rd-quarter results were in line with expectations, with adjusted net income of $4.1 billion, down 12.8% sequentially, marked by a poor performance in R&C following a fall in refining margins.

Against this backdrop, the analyst is lowering its EPS by 6% for 2024 to take account of the weakness in refining.

Oddo BHF believes that TotalEnergies is 'the only group to offer solid growth of 3% and whose strategy remains constant and clear, with excellent profitability and a head start in the transition'.

As a result, 'we believe that the valuation is very attractive and that the stock should trade with a multiple of 5x the CFFO of 2025e and deserves a premium vs. sector', it concludes.

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