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Investing.com - BofA Securities raised its price target on YPF S.A. (NYSE:YPF) to $54.00 from $40.00 while maintaining a Buy rating on the Argentine energy company. The new target represents significant upside potential from YPF’s current trading price of $35.29. According to InvestingPro data, analysts have set targets ranging from $33 to $55, with the consensus recommendation leaning toward Buy.
The price target increase was primarily driven by a reduction in BofA’s weighted average cost of capital (WACC) assumption to 13.7% from 15.3%, following what the firm described as a positive outcome in Argentina’s mid-term election.
BofA noted that the election results led to a significant reduction in Argentina’s country risk, a key factor in their valuation model adjustment.
The firm also incorporated YPF’s third-quarter 2025 results into its analysis and slightly improved its production curve projections for the mid-to-long term. YPF has shown impressive revenue growth of 41.18% over the last twelve months, with analysts forecasting continued sales growth. InvestingPro analysis indicates the company is currently undervalued compared to its Fair Value, despite facing profitability challenges in recent quarters.
These positive factors were partially offset by lower oil price forecasts for 2026-27, with BofA now projecting $60 per barrel in 2026 and $62 per barrel in 2027, while maintaining its long-term assumption of $70 per barrel. YPF is expected to return to profitability this year with a forecasted EPS of $2.30 for FY2025, according to InvestingPro data, with the next earnings report scheduled for March 5, 2026.
In other recent news, YPF Sociedad Anonima reported its third-quarter 2025 earnings, revealing a significant earnings miss. The company disclosed an earnings per share (EPS) of -0.53, which fell short of the forecasted 0.7702, resulting in a surprise of -168.81%. Despite this earnings miss, the stock experienced a rise in premarket trading, indicating some investor optimism. The earnings report is a crucial update for investors, as it highlights the company’s financial performance for the quarter. These developments are part of the recent activities surrounding YPF, providing essential insights into its current financial standing.
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