Jefferies ups Galp to 'hold' as Bacalhau field acts as a 'cash engine'

Galp Energia SGPS SA

02/04/2026 09:52

** Jefferies upgrades Portuguese energy company Galp Energia GALP.LS to "hold" from "underperform" as it benefits from lower Bacalhau field taxes, stronger downstream margins and midstream profitability

** It finds production growth from the Brazilian asset a "cash engine at higher oil prices" due to a favourable pre-salt fiscal regime

** It also expects 2026/27 high utilisation rates to capture strong refining margins, while midstream profitability is driven by the price gap between European and United States gas

** The broker adds that investor sentiment is further supported by the company having no exploration, production or refining exposure to the Middle East, alongside Repsol REP.MC and Equinor EQNR.OL

** Jefferies raises its price target by almost 40% to 20 euros on higher discounted cash flow and sum-of-the-parts valuations, incorporating a higher value for the Namibia assets

** Out of 22 analysts that cover Galp, ten rate the stock "strong buy" or "buy,"​  11 "hold" and one rates the stock "sell" - LSEG data

 (Reporting by Marta Serafinko in Gdansk)

 ((Marta.Serafinko@thomsonreuters.com; +48 58 769 66 00;))