UPDATE: Societe Generale Upgrades Total to Buy on Valuation, Yield and Catalysts
Societe Generale raised its rating on Total (NYSE: TOT) from Hold to Buy.
Societe Generale said, "Value on its own means little - stocks need a “story” to drive a rerating; we think Total has an unfolding story: aggressive portfolio management promises to divest non core or low return businesses, with a targeted $15-20bn of disposals announced for 2012-14 and over 50% of that under negotiation currently. … We believe the components are there to deliver top line and free cash flow growth – in due course, supported by ongoing exploration success, improving downstream results, and an attractively low valuation: sub sector 2013e PE, above-average yield."
Total closed at $50.40 on Wednesday.
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