From Financial Modeling Prep: 2025-04-07 03:40:00

Bank of America identifies Shell, Equinor, and TotalEnergies as top European oil picks due to mispricing relative to earnings momentum and free cash flow generation. Despite market challenges like higher tariffs and economic slowdown, these companies’ strong balance sheets and low breakeven oil prices make them appealing investments.

BofA’s analysis underscores European oil majors’ attractiveness with strong balance sheets and low breakeven oil prices. For example, Shell’s $65 per barrel breakeven outperforms peers needing over $90. This valuation gap, coupled with robust free cash flow, signals potential for investors to capitalize on relative mispricing.

The report warns of cash flow concerns in the sector, potentially leading to asset sales to manage net debt levels. Downside risks to 1Q25 cash flows are projected due to global economic uncertainty, tariffs, and subdued growth forecasts. Despite these challenges, European energy equities have outperformed key benchmarks amid market uncertainty.

Investors seeking deeper insights into European oil majors can utilize real-time data resources like the Ratios (TTM) API for valuation ratios and the Financial Growth API for monitoring earnings growth trends and revenue forecasts. With Shell, Equinor, and TotalEnergies offering strong balance sheets and free cash flow yields, these stocks may present a value opportunity amidst global trade uncertainties and subdued earnings growth forecasts.



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