YPF
🐂 The Vaca Muerta project is viewed as a primary engine for Argentina’s economic growth, positioning YPF favorably for the long term.
📉 Recent stock price declines, driven by oil market volatility, are considered potential buying opportunities by the analyst for investors with a long-term horizon.
💰 YPF possesses strong internal liquidity from asset sales, providing a significant advantage for reinvesting in projects compared to competitors reliant on external financing.
@ClaveBursatilTV:
“The discussion centers on the Vaca Muerta sector, specifically mentioning YPF and Vista being impacted by falling oil prices. YPF’s price dropped significantly, from around $30-$35 to $25, but recovered somewhat to close near $30. The guest sees a ‘gigantic opportunity’ in the sector, viewing it as a key engine for Argentina. They express absolute confidence in the project, considering any price adjustment a buying opportunity, perhaps entering gradually. The break-even for the project is estimated between $40-$45 per barrel, leaving room despite current prices. These are seen as long-term investments with huge potential. The fund closed its bank positions and is looking to increase energy, mining, and agro holdings, which they believe will be Argentina’s great engines. YPF is highlighted for its liquidity, having sold assets to reinvest directly into the project, giving it an edge over companies needing market financing. While falling oil prices create noise and short-term volatility, the long-term view remains positive. Exposure to commodity-producing companies is seen as a good long-term decision, understanding short-term swings. Even reaching previous highs wouldn’t be considered an overreaction if Argentina’s overall financial situation, particularly debt refinancing capabilities, improves significantly. The potential dollar inflow from Vaca Muerta benefits not just the stock but the country’s ability to manage debt, potentially lowering risk premiums.”
Watch the exact part of the video where @ClaveBursatilTV talks about YPF here:
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