UPDATE: Canaccord Genuity Upgrades Total S.A. to Hold on Dividend Sustainability

Canaccord Genuity upgraded Total S.A.

from Hold to Buy and raised the price target to $60.00. Canaccord Genuity noted, "Total sees volume growth of 3%pa for 2011-15, or >4%pa from the depressed 2012 base. ... Capex is rising sharply to fund this growth, and organic free cash flow does not currently cover dividend payments. However, we are increasingly comfortable with the sustainability of dividends – and the highest prospective yield in the sector - given 1) Total's strong progress towards its $15-20bn disposals targets and 2) our confidence in the turnaround in its organic free cash generation." Total S.A. closed at $49.50 on Thursday.