Eni and YPF Partner on Argentina LNG Project

Eni and YPF are teaming up on a major LNG project targeting 30 million tons of annual exports by 2030. Analysts project a 33.86% upside for YPF’s stock based on current prices. The brokerage community maintains an “Outperform” rating for YPF, underpinned by strong market sentiment and positive growth forecasts.

Eni, the Italian energy company, has recently announced a significant partnership with Argentina’s state-owned YPF on an ambitious liquefied natural gas (LNG) export project. This project aims to export as much as 30 million tons of LNG annualized by the year 2030. The initiative plans to utilize the extensive shale resources in Vaca Muerta, with a phased strategy and various partnerships that will be crucial to reaching this lofty target.

Analysts are viewing YPF SA (YPF) favorably, with 11 market experts offering price projections. The consensus target price currently sits at $45.87, indicating a substantial potential upside of 33.86% from YPF’s present share price of $34.27. Estimates range from as high as $62.00 to as low as $33.00, showing a broad spectrum of investor sentiment towards the company. For those looking for further details, the YPF SA (YPF) Forecast page contains additional insights regarding these estimates.

From the brokerage perspective, YPF maintains an average recommendation score of 2.0, which signifies an “Outperform” rating. This system ranks from 1 to 5, with lower numbers translating to stronger buy signals. Such a recommendation reflects the overall positive sentiment among analysts regarding YPF’s growth potential, bolstered by upcoming projects.

Moreover, the proprietary GF Value metric from GuruFocus estimates YPF’s fair value at $35.99 within a year. This suggests a moderate potential upside of 5.02%, compared to the current trading price of $34.27. The GF Value evaluation considers historical trading multiples, the company’s past growth trajectory, and projections for future performance. To delve deeper into YPF’s financial performance, interested parties can refer to the YPF SA (YPF) Summary page.

In conclusion, Eni’s alliance with YPF marks a critical step toward the development of Argentina’s LNG capabilities, which could significantly impact both companies and the market. With positive analyst forecasts and an expected considerable upside for YPF’s stock, the strategic venture appears promising. It will be interesting to see how this partnership progresses and influences the broader energy landscape in Argentina.

Original Source: www.gurufocus.com