KeyBanc has revised its price target for Talos Energy (TALO, Financial), lowering it from $16 to $12 while maintaining an Overweight rating on the stock. This adjustment is part of a broader market analysis ahead of the earnings season, reflecting updated forecasts for oil and natural gas prices.
The firm has reduced its oil price forecast, anticipating current pressures on oil prices due to concerns over OPEC+ output growth, U.S. oil production, and the potential for a global economic slowdown. These factors suggest that oil prices could be under significant strain in the near term.
Conversely, KeyBanc has increased its forecast for natural gas prices. Recent weather events, including unforeseen polar vortexes, alongside new LNG export project launches, have contributed to a positive shift in the natural gas market. Despite the ongoing pressure from persistent lower-48 production levels, KeyBanc suggests that a slowdown in oil production may result in decreased associated gas production, potentially stabilizing the market further.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for Talos Energy Inc (TALO, Financial) is $14.00 with a high estimate of $20.00 and a low estimate of $9.00. The average target implies an upside of 89.70% from the current price of $7.38. More detailed estimate data can be found on the Talos Energy Inc (TALO) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, Talos Energy Inc's (TALO, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Talos Energy Inc (TALO, Financial) in one year is $9.97, suggesting a upside of 35.09% from the current price of $7.38. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Talos Energy Inc (TALO) Summary page.
