TotalEnergies: Oil's War Premium Won't Last Forever (Downgrade)

TotalEnergies (TTE) is downgraded to Hold as the stock now fully reflects more optimistic expectations despite heightened risks from the Iran conflict. TTE delivered a strong Q1 with double-digit YoY and QoQ growth in net income, Adj. EBITDA, and CFFO, supporting increased buybacks and dividends. The Iran conflict provides a near-term oil price boost but introduces significant economic and political risks, including potential windfall taxes.