How to invest in an uncertain environment? Goldman Sachs recommends these two defensive targets.

Goldman Sachs Group, Inc. has released a research report stating that in a broader macroeconomic environment and with fluctuations in commodity prices, the bank continues to select investment targets in the exploration and production (E&P) sector that are more unique and defensive, and offer attractive risk-return ratios in the current market environment. The bank recommends investors to buy Expand Energy (EXE.US) and Viper Energy (VNOM.US). As previously emphasized by Goldman Sachs Group, Inc., the bank believes that the fundamentals of the natural gas industry remain solid and maintains an expectation for the benchmark Henry Hub natural gas price to be $3.75 per million British thermal units. The bank also stated that there is more upside risk than downside risk in the short term. Goldman Sachs Group, Inc. particularly recommends Expand Energy, stating the company adopts disciplined growth strategies, has a flexible and diversified asset portfolio, and rolling hedging plans that can maintain upside potential while limiting short-term volatility and protecting the company from downside risks. Additionally, Goldman Sachs Group, Inc. believes that Viper Energy, included in its core list, is expected to experience mean reversion after recent oil price-related concerns led to a general selloff in oil and gas stocks and royalty stocks. Expand Energy In the current turbulent macroeconomic environment, Goldman Sachs Group, Inc. continues to recommend Expand Energy. Expand Energy is an independent American natural gas producer. Goldman Sachs Group, Inc. rates Expand Energy as "buy" with a 12-month target price of $121, representing approximately 16% upside from the closing price on April 16th. Goldman Sachs Group, Inc. stated that since the announcement of significant tariffs by President Trump, natural gas producers have shown more resilience compared to other sub-industries, and Expand Energy is an attractive defensive investment target among American natural gas producers. Goldman Sachs Group, Inc. pointed out that due to the underperformance of Expand Energy's stock price so far this year compared to the industry average, the stock is likely to continue its recent outperformance. Reasons include the company's focus on dry gas production; possible updates to hedge positions in the latest financial report; and potential adjustments in production plans in an environment where Henry Hub prices range between $3.50 and $4.00 per million British thermal units. Goldman Sachs Group, Inc. believes that Expand Energy has the ability to handle short-term volatility and mitigate downside risks, as it has advantages such as a large, diversified asset base in Appalachia and Haynesville; a "hedge-the-wedge" strategy to lock in future prices in uncertain macroeconomic conditions; and operational flexibility through established deferred production capacity. Goldman Sachs Group, Inc. concluded that due to Expand Energy's strong execution capabilities, and with additional synergies announced compared to initial expectations, the management can continue to create value for shareholders through a large, diversified asset portfolio throughout the cycle. With the upcoming financial reports, the bank expects investors to focus on the prospects of the company's future activities, especially its ability to quickly bring supply online under demand-driven conditions. Goldman Sachs Group, Inc. anticipates that Expand Energy will continue to demonstrate operational discipline and reiterate its focus on long-term strategies beyond 2025. Viper Energy Goldman Sachs Group, Inc. believes that the market is undervaluing the high-quality asset base of Viper Energy. The bank rates Viper Energy as "buy" with a 12-month target price of $58, representing approximately 48% upside from the closing price on April 16th. Goldman Sachs Group, Inc. stated that Viper Energy's business model is high quality, and unlike other traditional exploration and development companies, it does not require capital expenditures but can benefit from high-quality resources in the Permian Basin. Although recent bearish trends in oil prices and macroeconomic conditions have led to concerns in the overall oil and gas outlook, causing pressure on the stock, the bank believes the market is underestimating the quality of Viper Energy as an operator on land. Therefore, Goldman Sachs Group, Inc. believes that Viper Energy's oil and gas activities are more defensive compared to other mineral rights owners, and expects the Permian Basin to be more resilient to industry-wide downturns or slowdowns. Additionally, Goldman Sachs Group, Inc. pointed out that Viper Energy's close relationship with Diamondback Energy (FANG.US) will continue to bring benefits, especially after the asset dropdown (expected to be completed in the second quarter of 2025), which will further enhance the synergies between Viper Energy and Diamondback Energy. Management has stated that after the transaction is completed, Viper Energy will hold about 75% of Diamondback Energy's well activity rights for the next five years. Furthermore, a large portion of activity in Viper Energy comes from major producers such as Exxon Mobil Corporation. Goldman Sachs Group, Inc. believes that companies like Viper Energy Partners LP (Viper Energy), Diamondback Energy, Inc., Occidental Petroleum Corporation, ConocoPhillips, and Ovintiv will have a relatively defensive position in a weak oil price environment. The bank still sees upside potential for Viper Energy's stock price.Bonjour, comment vas-tu aujourd'hui ?