Bank of America highlighted one name that remains its top pick among Europe’s major oil companies, arguing the stock is mispriced even under much lower oil price assumptions. 

TotalEnergies is the stock in question. 

Analyst Christopher Kuplent noted that even if Brent crude retreats to $60 a barrel, TTE’s share price has lagged its peers on “greater perceived cash flow risks,” a concern BofA believes is “misplaced.”

The bank’s call comes after its commodities team raised oil and gas forecasts for 2026–27 to account for risks tied to a shutdown of the Strait of Hormuz. 

BofA now expects Brent to average $77.50 in 2026 before easing to $65 in 2027, though it warned of “spike risks to >$200/bbl in case of sustained disruption.”

Higher forward prices have boosted the bank’s free cash flow expectations across the sector. 

Kuplent said 2026 breakeven prices for Europe’s “Big Oil” have fallen from about $65 to below $60 a barrel, helped by stronger gas prices and refining margins. 

Against that backdrop, TotalEnergies stands out, offering what BofA calls a “mispriced 12% FCF yield at $80/bbl” and 9 percent at $60.

While Big Oil shares have risen an average of 14 percent in recent weeks, TotalEnergies is up only 4 percent in March. BofA said the company’s “organic growth in oil, gas as well as power” should support rising payouts even in a lower-price environment.

BofA also noted that Equinor screens well in a scenario where oil and gas prices stay higher for longer, supported by its lack of Middle Eastern exposure.