Goldman Sachs reviews energy utility stocks: some individual stocks are under pressure in the short term, but the long-term potential should not be underestimated

The Zhitong Finance App learned that Goldman Sachs recently released research reports in the fields of energy, utilities and mining, reviewing stock performance and investment suggestions. Many stocks have recently experienced varying degrees of rise and fall, yet Goldman Sachs is still optimistic about future investment values.

Midstream Kodiak Gas Services (KGS.US) shares fell sharply by 14% this month. Previously, the company's 2024 earnings performance was steady, and continued to make progress, particularly in expanding profit margins. The results once again exceeded expectations and raised performance guidelines. The fundamentals are stable, and the negative factors considered by the market actually had less impact. Specifically, capital expenditure for the first half of 2025 was higher than expected, but this was mainly due to non-recurrent projects; compared with peers, its performance exceeded market expectations by a small margin. Despite the high quality of its assets and management, Kodiak's stock price is currently lower than its peers. If market fluctuations subside, it will still be one of the stocks that the bank is concerned about with potential to rise. The target price is $46.

Canada Natural Resources (CNQ.US), a major oil company and refiner sector, experienced a decline in stock prices over the past month due to Canadian tariffs and macroeconomic fluctuations. The macro market has fluctuated greatly recently, but the bank believes that the sell-off in Canadian Natural Resources shares has largely overreacted. Its strong quarterly results and the high-quality operation of its assets remain remarkable. The company operates steadily, with attractive free cash flow and dividend yields. In the future, we will continue to monitor management's latest information on operational execution, capital allocation priorities, and broader macroeconomic developments. The buy rating is maintained, and the target price is $36.

Viper Energy (VNOM.US) in the exploration and production (E&P) sector did not perform well in the past month, but it has an advantage in high-quality production areas and is expected to return in value in the future. The bank believes that the reduction in capital expenditure attributable to production in high-quality Permian basins, the close relationship between Diamondback Energy (FANG.US) and Viper Energy, and the return promise of a large amount of free cash flow will drive the future performance of the company's stock price to surpass the market. The completion of the asset spin-off transaction and the market's deeper understanding of it may also be a catalyst for rising stock prices. The target price for 12 months is $72.

FSLR.US (FSLR.US) in the cleantech sector outperformed the market due to policy and market sentiment, yet there are many potential favorable factors this year. Investors continue to ignore First Solar's competitive advantage as a vertically integrated domestic solar panel manufacturer in the US. This advantage not only helps solar project developers obtain investment tax credits (ITC), but its domestic production model can better guarantee product delivery time compared to imported products. Currently, the stock price has a lot of room to rise, and the target price is 274 US dollars.

The stock price of First Energy Company (FE.US) in the utilities sector fell in the last month, mainly because the 2025 profit guide issued by the company at the end of February was lower than its long-term earnings per share (EPS) growth rate guide. However, the bank believes that the company's projected price-earnings ratio for 2026 is very attractive. Compared with the 2026 expected price-earnings ratio of the same companies covered in the same industry, the discount margin is close to 20%. Factors such as the Ohio rate case may become a stock price catalyst. The target price is 45 US dollars, maintaining the purchase rating.

The share price of Decinib FMC (FTI.US) in the energy services sector fell 12% last month, mainly due to a reversal in market trends and investors' concerns about the impact of potential tariffs. However, the company's historical performance is stable, and about 70% of the contracts were obtained directly. The bank believes this will drive the company to continue to achieve good results in the next few quarters. Furthermore, the company maintains a leading position in terms of revenue in the integrated subsea market, and is expected to rely on orders to drive stock prices in the next few quarters, with a target price of 36 US dollars.

The share price of the American Industrial and Commercial Hardware Company (CMC.US) in the metals and mining sector is falling behind its peers, which may stem from two potential concerns among investors: product structure risk and non-US market sales risk. Its product portfolio is dominated by long steel, while other peers focus more on flat steel. In 2024, flat steel imports accounted for 36% of total steel imports, while long steel accounted for about 16%, so the ability to profit from the steel tariff theme was less than that of peers. However, it has advantages in terms of infrastructure investment, product and service expansion, and financial conditions. The target price is 68 US dollars, maintaining the purchase rating.

Hot topics in the industry have also attracted much attention. Although approval of LNG projects has progressed, rising EPC costs and SPA prices and contract environment issues have attracted market attention; the impact of the increase in global gas supply on US gas prices has become the focus; the Dallas renewable energy capital expenditure survey has raised investors' concerns about related project demand and policy impacts; and the impact of metals and mining companies on operations, tariffs, and financial risks have also been closely discussed by investors.