RBC Capital Markets said Monday it revised its forecasts for Galp Energia (GALP.LS), taking into account its recently updated commodity price deck, alongside the company's second-quarter results and upgraded full-year 2026 outlook.
The Portuguese energy group lifted its production guidance to 130,000 barrels of oil equivalent per day from the previously expected range of 125,000 to 130,000 barrels of oil equivalent per day, with analysts expecting the possibility of a further upgrade later in 2026.
The research firm nudged up its production estimates by 0.3% for 2026 and 0.2% for both 2027 and 2028. EPS projections for 2026 and 2027 were respectively lowered by 1.5% and 3.5%, while that for 2028 was raised by 5.3%.
"Despite some cautiousness from management, Galp is set to surpass both its operational and financial targets this year, and certain events could create additional optionality for shareholders (Moeve JV, Mozambique). At the same time, given the market's initial reaction to the much anticipated Mopane deal last year (-15% intraday), it is not surprising if investors remain cautious ahead of these potential 'catalysts', and wait for clearer signs of shareholder value creation," the research firm said.
The outperform recommendation on the stock and 22-euro price target were maintained.