Saudi Aramco Is Selling Shares. Why It Trades Differently Than Most Oil Stocks.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 01 2024
0mins
Source: barron's
- Saudi Arabian Oil Co. (Aramco) is a unique oil stock with characteristics of both a growth stock and a bond-like investment.
- Aramco has the best oil acreage globally, produces crude inexpensively, and pays healthy dividends but does not experience typical energy sector market fluctuations.
- The company plans to sell more stock to the public, offering 1.545 billion shares for around $12 billion to the Saudi Arabian government.
- The sale proceeds will fund Saudi government initiatives like Vision 2030, aiming to reduce oil dependency through real estate and tourism projects.
- While U.S. investors may face challenges accessing Aramco due to trading on the Tadawul exchange, the stock's valuation and dividend yield have become more attractive compared to peers like Exxon and Chevron.
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Analyst Views on FDS
Wall Street analysts forecast FDS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FDS is 295.91 USD with a low forecast of 253.00 USD and a high forecast of 326.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
1 Buy
7 Hold
4 Sell
Hold
Current: 207.320
Low
253.00
Averages
295.91
High
326.00
Current: 207.320
Low
253.00
Averages
295.91
High
326.00
About FDS
FactSet Research Systems Inc. is a global financial digital platform and enterprise solutions provider. The Company's solutions deliver financial data, analytics, and open technology to global clients, including individual users. Its segments include the Americas, EMEA and Asia Pacific. It provides financial data and market intelligence on securities, companies, industries and people to enable its clients to research investment ideas and analyze, monitor and manage their portfolios. It supports various workflows, including investment research, quantitative research, portfolio management and trading, portfolio analytics, wealth management, ESG investing solutions, industry analysis and data solutions. It provides open and flexible technology offerings, including a configurable desktop and mobile platform, and comprehensive data feeds. Its technology also includes LogoIntern, a workflow tool to streamline the task of adding, organizing, and formatting logos into pitch decks.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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