JPMorgan on Friday pounded the table for energy stocks, as higher-for-longer interest rates further squeezes the flow of capital into new supply. Europe’s energy stocks
XX:SXEP
have only gained 10% since June while oil prices
CL.1,
+0.91%
have jumped 30%. JPMorgan said it’s recommending the majors over midcaps, upgrading Eni
ENI,
+0.95%
to overweight, reiterating overweights on Shell
SHEL,
+0.46%,
TotalEnergies
TTE,
-0.19%
and Neste
NESTE,
+1.94%,
and lifting Repsol
REP,
-0.03%
to neutral. The bank raised its rating on global energy stocks to overweight from neutral, as it sees an emerging supply-demand gap beyond 2025, coupled with strengthening sector fundamentals.
Globally, it said the key stocks to outperform are Eni, Shell, TotalEnergies, Saudi Aramco
2222,
-0.58%,
Exxon Mobil
XOM,
-1.41%,
Marathon Petroluem
MPC,
+1.38%,
Tenaris
TS,
-2.32%,
Baker Hughes
BKR,
-2.07%,
Cenovus
CVE,
-2.10%,
Prio , PetroChina
601857,
+1.50%,
Beach Energy
BPT,
+0.31%
and Ampol
ALD,
+2.11%.
“Dear generalists, put your seatbelts on,” said analysts led by Christyan Malek. “While …
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