-- RBC Capital Markets revised its estimates for TotalEnergies (TTE.PA, TTE.L) amid model changes following the French energy group's trading update and assumptions for higher commodity prices.
The research firm on Wednesday upgraded its first-quarter estimates for integrated liquefied natural gas, refining and chemicals, and marketing and services, which offset reduced projections for upstream net earnings and integrated power. As such, RBC's forecasts for TotalEnergies' first-quarter adjusted net income increased to $5.45 billion from $5.19 billion, reflecting an 8% upside to consensus.
"Higher hydrocarbon production in 1Q26 qoq leaves TTE well paced to benefit from higher realisations, despite some lag effects in its portfolio," analysts said. "The trading update highlighted stable sequential trends in upstream production in the quarter, which combined with higher realisations in March, should drive up earnings materially qoq. Additionally, strong trends in LNG production, ~10% higher qoq, will support sequential growth in earnings despite flat LNG prices qoq."
The stock, which remains RBC's "top pick" among supermajors, is rated outperform with an unchanged price target of 85 euros.