Analysts’ Favorite Integrated Energy Stocks: Here Are the Top 10
Analyst ratings for integrated energy stocks
In this series, we’ll rank the top ten global integrated energy companies based on their “buy” ratings from Wall Street analysts. Then we’ll delve into their individual performances. Let’s start by ranking them.
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Royal Dutch Shell (RDS.A), YPF (YPF), and Suncor Energy (SU) are the top three companies that have received more than 75.0% “buy” ratings from analysts.
The bottom three of the top ten companies are Petrobras (PBR), ExxonMobil (XOM), and Total (TOT). These companies have received less than 50.0% “buy” ratings. The middle companies are Chevron (CVX), Cenovus Energy (CVE), BP (BP), and Eni SpA (E), with 50.0%–75.0% “buy” ratings.
Top three integrated energy companies’ implied gains (based on mean target prices)
Among the top three stocks, YPF has the highest implied gain of 37.0% based on its mean target price. Shell and Suncor have lower implied gains below 20.0%.
All three have strengths that make them unique. Shell’s BG Group acquisition has helped it take a leap in its strategic growth path. YPF is unique due to its regulated domestic oil and gas industry that promotes the exploration and production of hydrocarbons. SU is in the business of extracting oil from oil sands, with significant improvement in operating cost structures in the past few quarters.
Implied gains on other stocks
CVE’s mean target price implies a 20.0% gain from the current level, which is the second highest compared to its peers. However, the leading companies in the integrated space, Chevron (CVX), BP (BP), and ExxonMobil (XOM), have implied gains of less than 10.0% based on their mean target prices. CVX and BP stocks have risen significantly compared to the rise in their mean target prices in the past year, squeezing their implied gains. However, XOM stock has fallen steeply, more than the fall in its mean target price in the past year. We’ll look at that later in the series.
Integrated energy companies Total (TOT) and Eni SpA (E) trade at levels that are higher than their mean target prices.
In the rest of this series, we’ll look at analyst ratings for each of the above companies, beginning with Shell.