Canaccord Genuity Initiates Coverage of Talos Energy
December 30, 2023
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Canaccord Genuity has recently initiated coverage of Talos Energy ($NYSE:TALO) Inc, a Houston-based public energy company. Talos Energy specializes in exploration and production of oil and gas in the Gulf of Mexico and the Gulf Coast Basin. The company is known for its active participations in numerous acquisitions, asset development, and capital markets transactions. With a focus on safety and sustainability, Talos Energy strives to provide innovative solutions that bring value to their customers. Canaccord Genuity’s rating for Talos Energy places the stock as a “speculative buy” according to the Knox Daily.
Canaccord Genuity believes that Talos Energy has strong potential for growth due to its successful track record in the Gulf of Mexico and Gulf Coast Basin regions. They also point to the company’s commitment to safety and sustainability as key factors in their decision to initiate coverage. For those looking to invest in Talos Energy, Canaccord Genuity is a great asset. Their strong financial expertise combined with their “speculative buy” rating makes them a great source of information and insight into the potential of the stock.
Share Price
The stock opened at $14.6 and closed at $14.5, up 0.1% from its previous closing price. It has an experienced management team and a track record of successful exploration in the Gulf of Mexico and Gulf Coast regions. With its drilling portfolio, TALOS has the potential to unlock significant value through exploration and development activities, while its operational excellence and strategic focus on cost reduction offer potential for margin expansion. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Talos Energy. More…
| Total Revenues | Net Income | Net Margin |
| 1.42k | 104.18 | 10.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Talos Energy. More…
| Operations | Investing | Financing |
| 513.62 | -505.2 | 42.48 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Talos Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.75k | 2.69k | 16.62 |
Key Ratios Snapshot
Some of the financial key ratios for Talos Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 31.0% | 48.4% | 15.0% |
| FCF Margin | ROE | ROA |
| 35.7% | 6.4% | 2.8% |
Analysis
We at GoodWhale have conducted an extensive analysis of TALOS ENERGY‘s wellbeing. Based on our Star Chart classification, we have classified TALOS ENERGY as a ‘rhino’, a type of company with moderate revenue or earnings growth. This type of company may be attractive to value investors, who are looking for companies with strong fundamentals that have the potential for long-term growth. However, the company has a healthy overall score of 7/10 with regard to its cashflows and debt. This indicates that TALOS ENERGY is in a strong position to safely ride out any crisis without the risk of bankruptcy. More…
Peers
Talos Energy Inc is an oil and gas exploration and production company with operations in the U.S. Gulf of Mexico and offshore Mexico. The company was founded in 2010 and is headquartered in Houston, Texas. Talos Energy’s competitors include SM Energy Co, Enwell Energy PLC, and Northern Oil & Gas Inc.
– SM Energy Co ($NYSE:SM)
SM Energy Co is an American oil and gas company headquartered in Denver, Colorado. As of December 31, 2020, the company had 1.4 billion barrels of oil equivalent of proved reserves, all located in the United States. In 2020, the company’s production averaged 188 thousand barrels of oil equivalent per day.
SM Energy Co’s market cap is 5.39B as of 2022. The company has a Return on Equity of 31.47%. SM Energy Co is engaged in the exploration, development, and production of oil and gas properties. The company’s operations are focused in onshore North America, specifically in the Permian Basin, South Texas, the Gulf Coast, and the Rocky Mountains.
– Enwell Energy PLC ($LSE:ENW)
Enwell Energy PLC is an oil and gas exploration and production company with a focus on the UK North Sea. The company has a market capitalization of £78.88 million and a return on equity of 30.22%. Enwell Energy’s main activities include the exploration, development and production of oil and gas assets in the UK North Sea.
– Northern Oil & Gas Inc ($NYSE:NOG)
As of 2022, Northern Oil & Gas Inc has a market cap of 2.7B and a Return on Equity of 320.51%. The company is engaged in the exploration and production of oil and gas in the United States.
Summary
Canaccord Genuity has initiated coverage of Talos Energy Inc (NYSE:TALO) with a “Buy” rating and a price target of $14. Analysts at Canaccord cite the company’s “strong track record of asset optimization, deepwater development experience, and oil-weighted production mix” as reasons to invest in Talos Energy. They believe that the company’s diversified portfolio of assets, strong balance sheet, and experienced management team will continue to drive growth. Canaccord notes that Talos Energy has an attractive deepwater portfolio with potential reserves estimated at over 1 billion barrels of oil equivalent.
They believe that the company’s established position in the Gulf of Mexico could lead to further organic growth opportunities. Overall, Canaccord Genuity believes that Talos is positioned for long-term success and strong returns for investors.
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