HSBC Boosts BP and TotalEnergies to 'Buy' Amid Europe's Gas Price Surge

HSBC has upgraded its ratings on BP and TotalEnergies shares to 'buy', citing higher natural gas prices in Europe as a key factor.

The bank raised its forecast for European natural gas prices by 34% for the remainder of this year and by 40% for next year, while also increasing its forecast for 2028 slightly.

HSBC analyst Kim Fustier expects BP and TotalEnergies to see significant improvements in their oil businesses and refining margins, as well as substantial cash generation and share buybacks.

In her assessment, the shares of companies with a 'buy' rating have upside potential of around 20%.