TALO Talos Energy

Wall Street Zen downgraded Talos Energy (NYSE:TALO) from a "hold" to a "sell" rating. This comes as the company faces profitability concerns, with a negative net margin and a forecast negative EPS for the current fiscal year, despite some analysts raising price targets. The stock's consensus rating remains "Hold" with an average target price of $14.25.

Assenagon Asset Management S.A. recently acquired a new stake in Talos Energy Inc. (NYSE:TALO) during the third quarter, purchasing 379,068 shares valued at approximately $3.64 million, representing about 0.22% of the company. Despite analyst ratings being a cautious "Hold" with a consensus target price of $14.25, other institutional investors have also adjusted their positions in the company. Talos Energy currently has a market capitalization of $1.90 billion, a negative net margin of 19.02%, and a 52-week trading range between $6.23 and $12.19.

Talos Energy Inc. (NYSE:TALO) has received a consensus "Hold" rating from seven brokerages, with an average 12-month price target of $14.25. The company's stock opened at $10.94 with a market capitalization of $1.86 billion and negative profitability. Institutional investors have been increasing their positions in TALO, with 89.35% of the stock owned by hedge funds and other institutional investors.

According to a two-stage Discounted Cash Flow (DCF) model, Talos Energy Inc. (NYSE:TALO) appears to be trading at a 44% discount to its estimated fair value. The projected fair value is US$19.50 per share, significantly higher than its current share price of US$10.93 and analyst price target of US$13.79. This valuation is based on future cash flow projections and discounting them to present value using a cost of equity of 7.4%.

Talos Energy (TALO) has seen its Relative Strength (RS) Rating increase from 75 to 83, indicating renewed technical strength. This rating, provided by Investor's Business Daily, helps identify stocks with strong price movement. The company has consistently shown rising price performance, clearing the 80-plus RS Rating benchmark multiple times.

Talos Energy (TALO) has seen a 20% share price gain over the past three months, outperforming many energy peers and prompting a re-evaluation of its market position. Despite this surge, the stock appears undervalued according to analyst targets and intrinsic value, trading at $11.38 against a fair value of $13.71 per share. The company's strong balance sheet, share buybacks, and potential for accretive M&A suggest upside, though operational risks in the Gulf of Mexico remain a key consideration.