Total: UBS upgrades to 'buy' - raises target price

(CercleFinance.com) - UBS has changed its stance on the Total share, which it now recommends investors buy (vs.
a previous "neutral" rating).
Alongside this upgrade, the broker has raised its 12-month target price for the share from 56 euros to 62.5 euros, representing upside potential of around 14%.

According to analysts, the quality of the management of the French oil and gas giant should result in the group having to a similar valuation to that of BP. Indeed, the group's Q2 accounts underlined the "resilience" of Total's business, while publications made by other oil majors were fairly poor. Total benefits from significantly higher production, and at the same time from savings measures that boost its cash generation.

The group's recent acquisition of Engie LNG strengthens its asset base, in particular as it comes with the sale of other less promising assets.



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