Nomura Securities Upgrades TOTAL S.A. (TOT) to Neutral; Increased Probability of Large Disposal Program
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Price: $48.30 --0%
Rating Summary:
17 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
17 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Nomura Securities upgraded TOTAL S.A. (NYSE: TOT) from Reduce to Neutral with a price target of EUR39.00 (from EUR37.00).
Nomura analyst said, "Upgrade the stock and increase our PT primarily driven by the increased probability that Total may announce a larger than expected disposal programme for the next two years (2013-14) at the September midyear strategy update. With this report, we challenge the thesis that subsequent to conclusion of Sanofi's (NYSE: SNY)sale by Total at the end of this year, the disposal run rate at Total would drop off and now assume in our financial forecasts a run rate of c. EUR4bn per annum for 2013 and 2014 to reflect management’s desire to ‘up the ante’ on portfolio restructuring. With the shares trading at 7.2x 2013E P/E and a dividend yield of 6.4%, the risk-reward appears balanced into the autumn, with some 5% upside to our new target price of EUR 39. With superior cash generation, an option of exploration success in Alaska and a more wide-ranging resource base, Shell (NYSE: RDS-A) remains our favourite Big Oil name over the next 12 months."
For an analyst ratings summary and ratings history on TOTAL S.A. click here. For more ratings news on TOTAL S.A. click here.
Shares of TOTAL S.A. closed at $45.70 yesterday.
Nomura analyst said, "Upgrade the stock and increase our PT primarily driven by the increased probability that Total may announce a larger than expected disposal programme for the next two years (2013-14) at the September midyear strategy update. With this report, we challenge the thesis that subsequent to conclusion of Sanofi's (NYSE: SNY)sale by Total at the end of this year, the disposal run rate at Total would drop off and now assume in our financial forecasts a run rate of c. EUR4bn per annum for 2013 and 2014 to reflect management’s desire to ‘up the ante’ on portfolio restructuring. With the shares trading at 7.2x 2013E P/E and a dividend yield of 6.4%, the risk-reward appears balanced into the autumn, with some 5% upside to our new target price of EUR 39. With superior cash generation, an option of exploration success in Alaska and a more wide-ranging resource base, Shell (NYSE: RDS-A) remains our favourite Big Oil name over the next 12 months."
For an analyst ratings summary and ratings history on TOTAL S.A. click here. For more ratings news on TOTAL S.A. click here.
Shares of TOTAL S.A. closed at $45.70 yesterday.
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