Bank of America has reiterated its "buy" recommendation on TotalEnergies and raised its price target from 62 to 65 euros, reflecting the accelerated net present value following the French energy group's acquisition of EPH assets.
"We observe an annualized accretion of free cash flow of around 10% and a corresponding decrease in TotalEnergies' oil price breakeven point by 5 cents per barrel," the broker stated.
BofA further added that it now expects TotalEnergies' integrated power segment to become a free cash flow generator over the next 18 months, "highlighting a key catalyst for revaluation."
