Goldman Sachs picks an oil stock it believes will rally 50% this year

SectorOil & Gas
CountryMiddle east

Analysts at Goldman Sachs have named oil stocks it says are set to rally by as much as 54% this year, as the transport market recovers and they start to generate cash returns for investors. The investment bank expects a "strong" recovery for the sector in the second half of 2021, after oil and gas plunged in 2020 due to a dramatic fall in demand during the coronavirus pandemic. "As we look farther into 2021, we believe that the combination of oil price recovery, improving downstream margins and cost-cutting will trigger the beginning of a positive earnings revision cycle for the European integrated majors," Goldman's analysts led by Michele Della Vigna wrote in a note published this week. And while European Big Oil has risen around 40% since October lows, Goldman said it sees about another 20% to 50% upside for its "buy" rated stocks: more...