📊 On March 26, 2025, Citigroup raised its rating on TotalEnergies SE (TTE) from ‘Neutral’ to ‘Buy’, signaling renewed optimism in the company’s financial trajectory and market positioning.
💡 The upgrade stems from Citigroup’s view that TotalEnergies is well-placed to outperform peers thanks to its strong projected free cash flow from operations. Analysts expect the company’s CFFO to grow at a compounded real rate of 6% annually between 2024 and 2030—well above the average of its European energy counterparts.
💼 Despite a challenging energy market, TotalEnergies delivered adjusted net income of $4.4 billion in Q4 2024, beating expectations. This strength was driven by profitable gas trading operations, which helped offset pressure from declining oil prices and weaker fuel demand.
💰 TotalEnergies continues to be a reliable income stock for dividend-focused investors. As of late March 2025, its dividend yield stands at an attractive 5.26%. The company has a strong track record of maintaining and gradually increasing dividends, and in October 2024, it announced a 5% hike in its dividend for 2025. Management also committed to returning 45% of the company’s cash flow to shareholders through a mix of dividends and share buybacks—projected at $2 billion per quarter through the year.
🚀 Citigroup’s upgrade reflects growing confidence in TotalEnergies’ ability to deliver shareholder value through disciplined capital management and strong operational execution. For investors seeking a blend of income and growth, TTE is becoming hard to ignore.