HSBC upgrades TotalEnergies stock rating on commodity price outlook

HSBC has upgraded TotalEnergies SE's stock rating to "Buy" from "Hold" and raised its price target to EUR93.00 from EUR80.00, based on revised commodity price assumptions and the firm's base case scenario for the Strait of Hormuz. The firm believes that an assumed extended disruption in the Middle East is more than offset by higher prices and margins, leading to material earnings revisions, higher shareholder distributions, and faster deleveraging.

TotalEnergies has a capital markets day scheduled for September 29 in New York, and HSBC expects the strategic direction to remain unchanged, with disciplined investment, profitable growth across oil, LNG, and power, and a commitment to shareholder returns and balance sheet strength expected to continue.

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