Citigroup Forecasts Strong Price Appreciation for Talos Energy (NYSE:TALO) Stock

Key Points

• Citigroup raised its price target on Talos Energy from $16.00 to $20.00 and kept a "buy" rating, implying roughly a 27.13% upside from the current price.
• Analyst views are mixed — three Buys, two Holds and one Sell — giving an average rating of "Hold" and an average target of $15.63; the stock traded down about 3.6% to $15.73 on Tuesday.
• Fundamentals remain weak: Talos missed quarterly EPS estimates (reported a $0.44 loss vs. a $0.27 expected loss), revenue fell 19.2% YoY to $392.2M, and the company shows negative margins and ROE with analysts forecasting a full-year EPS of −$0.44.

Talos Energy (NYSE:TALO - Get Free Report) had its price target upped by investment analysts at Citigroup from $16.00 to $20.00 in a research note issued to investors on Tuesday,Benzinga reports. The firm presently has a "buy" rating on the stock. Citigroup's target price points to a potential upside of 27.13% from the company's current price.

Several other analysts also recently weighed in on the stock. KeyCorp lifted their target price on shares of Talos Energy from $12.00 to $13.50 and gave the company an "overweight" rating in a report on Friday, December 5th. Wall Street Zen cut Talos Energy from a "hold" rating to a "sell" rating in a research note on Saturday, February 28th. Weiss Ratings restated a "sell (d)" rating on shares of Talos Energy in a research report on Monday, December 29th. Benchmark downgraded Talos Energy from a "buy" rating to a "hold" rating in a report on Thursday, March 5th. Finally, Mizuho increased their target price on Talos Energy from $14.00 to $15.00 and gave the stock a "neutral" rating in a research note on Tuesday, March 17th. Three analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $15.63.

Talos Energy Trading Down 3.6%

NYSE TALO traded down $0.59 during trading hours on Tuesday, reaching $15.73. The company had a trading volume of 3,118,585 shares, compared to its average volume of 2,372,342. The stock has a 50-day moving average of $13.16 and a 200 day moving average of $11.41. Talos Energy has a 1-year low of $6.23 and a 1-year high of $17.00. The company has a current ratio of 1.30, a quick ratio of 1.30 and a debt-to-equity ratio of 0.57. The stock has a market capitalization of $2.65 billion, a P/E ratio of -5.54 and a beta of 0.54.

Talos Energy (NYSE:TALO - Get Free Report) last announced its quarterly earnings results on Tuesday, February 24th. The company reported ($0.44) earnings per share for the quarter, missing analysts' consensus estimates of ($0.27) by ($0.17). Talos Energy had a negative net margin of 27.77% and a negative return on equity of 6.59%. The company had revenue of $392.24 million for the quarter, compared to analyst estimates of $431.22 million. During the same quarter in the prior year, the business earned $0.08 earnings per share. Talos Energy's revenue was down 19.2% on a year-over-year basis. As a group, research analysts anticipate that Talos Energy will post -0.44 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Virtus Fixed Income Advisers LLC purchased a new stake in Talos Energy during the second quarter worth approximately $25,000. Larson Financial Group LLC increased its stake in Talos Energy by 142.9% in the third quarter. Larson Financial Group LLC now owns 3,301 shares of the company's stock valued at $32,000 after purchasing an additional 1,942 shares during the last quarter. Smartleaf Asset Management LLC raised its holdings in Talos Energy by 134.4% during the second quarter. Smartleaf Asset Management LLC now owns 3,703 shares of the company's stock worth $32,000 after purchasing an additional 2,123 shares in the last quarter. Quarry LP purchased a new stake in shares of Talos Energy during the 3rd quarter worth approximately $36,000. Finally, PNC Financial Services Group Inc. lifted its position in shares of Talos Energy by 22.7% during the 3rd quarter. PNC Financial Services Group Inc. now owns 5,679 shares of the company's stock worth $54,000 after buying an additional 1,049 shares during the last quarter. 89.35% of the stock is owned by institutional investors and hedge funds.

Talos Energy Company Profile

Talos Energy Inc is an independent oil and gas exploration and production company headquartered in Houston, Texas. Founded in 2012 by industry veterans Tim Duncan and Jeremy Rights, the firm completed its initial public offering in 2021 and trades on the New York Stock Exchange under the ticker symbol TALO. The company's core operations focus on the acquisition, exploration, development and production of offshore hydrocarbon reserves, with a primary emphasis on the U.S. Gulf of Mexico basin.

Talos Energy's asset portfolio spans deepwater and shelf opportunities in the Gulf of Mexico, where it holds interests in several producing fields and exploration blocks.

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