World : The ‘universally hated and cheap’ energy sector is poised for a rebound, JP Morgan says

  • J.P. Morgan strategists are predicting a rebound in energy as the economy rebounds and oil prices gain.
  • The firm cites “technicals, improving fundamentals” and a “stabilizing business cycle.”
  • Exploration and production companies like Halliburton and Marathon Oil are among the top picks.

Investors should return to the “hated” but undervalued energy sector as the economy starts to grow again and oil prices turn higher, J.P. Morgan Chase strategists said Thursday.

The industry is poised to rebound amid a stampede out by institutional investors, with specific beneficiaries likely to be exploration and production companies, Dubravko Lakos-Bujas, the firm’s chief U.S. equity strategist, said in a note to clients.

“We believe favorable technicals, improving fundamentals with stabilizing business cycle, and ongoing geopolitical tensions in the Middle East could help redirect flows into this universally hated and cheap sector,” Lakos-Bujas wrote.

 

Source : https://www.cnbc.com/2019/09/26/jp-morgan-on-energy-universally-hated-and-cheap-sector-to-rebound.html

Smart Grid Bulletin September 2019


View all SMART GRID Bulletins click here