YPF Sociedad Anonima (YPF – Research Report), the Energy sector company, was revisited by a Wall Street analyst today. Analyst Leonardo Marcondes from Bank of America Securities reiterated a Buy rating on the stock and has a $54.00 price target.
Leonardo Marcondes has given his Buy rating due to a combination of factors that suggest YPF Sociedad Anonima’s stock has potential for growth. Despite YPF’s adjusted EBITDA for the fourth quarter of 2024 falling short of both Bank of America’s expectations and consensus estimates, the company’s free cash flow remained positive. This was primarily due to the collection of overdue natural gas receivables and proceeds from mature fields, alongside lower debt service payments.
Additionally, YPF’s reserve update showed a slight increase, with a notable growth in shale reserves. This improvement in reserves, particularly in shale, suggests a strong reserve replacement ratio and an extended reserve life. Marcondes expects these factors, along with the anticipated benefits from the sale of mature assets, to support the stock’s performance. The downstream segment also exceeded expectations, which further supports the Buy rating as it indicates a stronger-than-expected performance in certain areas of the business.
Marcondes covers the Energy sector, focusing on stocks such as YPF Sociedad Anonima, Vista Oil & Gas SAB de CV, and Ultrapar Participacoes SA. According to TipRanks, Marcondes has an average return of -8.5% and a 30.77% success rate on recommended stocks.
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