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AlphaValue/Baader Europe Revises Galp Energia Rating Amid TotalEnergies Partnership, Bacalhau's First Oil

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AlphaValue/Baader Europe revised its rating on Galp Energia (GALP.LS), taking into account the start of production at the company's Bacalhau project and optimism over its partnership with TotalEnergies (TTE.L, TTE.PA) on the Mopane oil discovery in Namibia.

The research firm changed its opinion to add from buy on Tuesday, with a price target of 21.3 euros.

Analysts also increased their adjusted 2026 EPS estimate for the Portuguese energy company by 6.64% to 1.73 euros. For 2027, the projection was raised by 2.69% to 1.53 euros.

"The lower Brent deck (87/72/65 $/bbl vs 95/80/75) cuts upstream oil prices, but two changes more than make up for it. First, we have corrected depreciation, which was overstated. Fixing it lifts group EBIT by about EUR0.5bn a year and brings D&A back in line with the 2025 actual (EUR664m)," analysts said. "Second, the new EUR250m a year share buyback reduces the share count from about 736m to about 701m by 2028."

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