YPF downgraded to Neutral from Buy at Citi

Citi downgraded YPF (YPF) to Neutral from Buy with a price target of $44, up from $33. In the more than a year since Javier Milei was elected as the President of Argentina, the rapid fiscal adjustment process has driven a markedly more positive investor sentiment towards Argentinean assets that contrasts with a challenging economic environment in its LatAm neighborhood, especially for the oil and gas players, the analyst says. While “quite constructive” on the Energy sector all year, the firm is “reluctant to chase the rally at this point,” leading it to downgrade YPF.