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Where Do Analyst Ratings for Total Stand ahead of Earnings?

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Apr. 18 2019, Published 1:52 p.m. ET

Analyst ratings for Total

Total (TOT) is expected to post its first-quarter earnings on April 26, 2019. The company’s earnings are expected to fall year-over-year in the quarter. Let’s review Wall Street analysts’ opinion on Total stock ahead of its earnings.

The number of analysts that have given Total a “buy” rating has risen in the past year. In April 2018, six analysts had rated Total, of which only two (or 33%) had rated the stock a “buy.”  However, now, five analysts have covered Total, all of which have rated the stock a “buy.” So, the analyst ratings have improved. The company’s mean target price of $70 implies a 25% gain from the current level.

Suncor Energy (SU), Chevron (CVX), BP (BP), and Royal Dutch Shell (RDS.A) are rated a “buy” by 92%, 77%, 55%, and 82% of analysts, respectively.

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Why analysts love Total

Total’s financials improved in 2018. The company’s earnings rose by 28% to $13.6 billion in the year. Plus, the company’s cash flow from operations rose by 11% to $24.7 billion in 2018, improving Total’s liquidity position.

Further, Total had a strong upstream performance in 2018. Total’s upstream volumes rose by 8% to record highs of 2.8 million barrels of oil equivalent per day in 2018. Many significant projects began in the year including Yamal LNG, Ichthys, Kaombo, and Egina. Total’s exploration and production earnings rose by 71% YoY led by higher price realizations and better volumes. In 2019, Total’s hydrocarbon production is expected to rise by around 9% with current project ramp-ups and new project start-ups.

Thus, analysts are positive on Total likely due to its expected upstream volumes growth and sound financial position.

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