Following the strong performance in TOTAL’s Q1’24 result in line with the marketer’s dominance of the downstream oil and gas sector, we update our 12-month target price to N537.32 and retain a BUY recommendation on the ticker. Our view is premised on the sustained positive impact of the removal of subsidy payments and consequent deregulation of PMS, the improvement in the company’s sales mix by driving revenue from the higher-margin lubricant segment, its ability to continue leveraging its strong network infrastructure and expectations of better product availability on account of improved output from the Dangote and Port-Harcourt Refineries.
