9 Jul

How Analysts Rate Total ahead of Second-Quarter Earnings

WRITTEN BY Maitali Ramkumar

Analyst ratings for Total

In this series, we’ve examined Total’s (TOT) Q2 2018 estimates, its segmental earnings outlook, its stock performance, and dividend yield. Now, we’ll examine analyst ratings for Total.

How Analysts Rate Total ahead of Second-Quarter Earnings

The number of analysts covering Total has fallen in July. Last July, six analysts covered Total. One rated the stock a “buy.” However, only four analysts are currently covering Total. Two of these have rated it a “buy.”

Why are two of four analysts positive on Total?

Total has a robust upstream portfolio. TOT expects its hydrocarbon production to grow by a 5% CAGR (compound annual growth rate) between 2016 and 2020. Thus, production growth coupled with higher oil prices could result in higher earnings for the company in the second half of 2018. Wall Street analysts expect Total’s earnings to grow by 30% in 2018. In the first quarter, TOT’s earnings rose 8% year-over-year. In the second quarter, TOT’s earnings are estimated to rise by 52% year-over-year.

Further, Total’s financial position is strengthening. In the first quarter, Total’s adjusted earnings and cash rose. Also, Total’s total-debt-to-total capital ratio stood at ~31% in the first quarter, lower than the industry average of 33%.

Analyst ratings for peers

TOT’s peers ExxonMobil (XOM), Equinor (EQNR), and YPF (YPF) have been rated as a “buy” by 33%, 25%, and 83% of analysts covering their stocks, respectively. ENI (E), BP (BP), and Royal Dutch Shell (RDS.A) have been rated a “buy” by 50%, 45%, and 89% of analysts, respectively.

In the final part of this series, we’ll look at changes in the short interest in Total.

Latest articles

Tortoise Capital Advisors bought 9.5 million Kinder Morgan shares in Q3. That was the biggest addition among the company’s top 10 institutional investors.

Although near-term weakness exists in the cannabis stocks, we expect Cannabis 2.0 products or cannabis-derived products could act as a catalyst.

The US, Saudi Arabia, and Russia are the world’s top three crude oil producers. Let’s take a look at the world’s top oil players by production volumes.

Tesla’s Model Y is gearing up to enter the EV market next summer. Ford heated up this space with its announcement of the Mustang Mach-E launch in late 2020.

Yesterday, Comcast (CMCSA) rose 0.5% and closed at $44.81, with a market capitalization of $203.9 billion. But can you expect a further rise?

Advanced Micro Devices (AMD) is one of the best-performing semiconductor stocks of 2019, beating 100% year-to-date growth.