Goldman Sachs advised 5 energy stocks. One of them is mid-cap

Goldman Sachs advised investors to pay attention to five stocks of energy companies, among which one belongs to the mid-cap segment, CNBC noted. Goldman Sachs analyst Neil Mehta published an investment note on April 17, after Iran announced the "full opening" of the Strait of Hormuz for the passage of commercial vessels. At the same time, US President Donald Trump said the US blockade of Iranian ports and ships was still in place.

Oil prices fell sharply on Friday, April 17, but then jumped on Monday, April 20, amid a new escalation in conflict. "We recognize there is significant geopolitical and commodity volatility, but believe these [investment] ideas are fundamentally sound within our medium-term outlook," Ma notes.

The Goldman Sachs list includes securities of dividend-paying companies. Four of the five have the potential to grow by at least 16%, according to the investment bank's forecast.

- Golar LNG, headquartered in Bermuda, which owns liquefied natural gas (LNG) infrastructure.

Dividend yield of its shares is almost 1.9%, and the target price set by Goldman Sachs analysts is $60, which means the potential growth of almost 16% to the value of securities at the close of trading on April 17. On that day the capitalization of the company amounted to $5.28 billion.

Until recently, Golar LNG developed two lines of business - floating LNG liquefaction terminals and floating storage and regasification units. At the end of February, it announced that it would focus exclusively on the former.

Supporting the development of artificial intelligence and building data centers requires energy [that can be obtained from LNG], the company explained at the time. In addition, geopolitical events in Europe and the Middle East "have re-emphasized the risks to the security of global energy supply caused by over-reliance on a single supplier or freedom of navigation," the press release said.

A month later, Golar announced that it had selected Goldman Sachs to evaluate its floating LNG liquefaction terminal business and determine its development plans. At the same time, the company indicated that it did not rule out the sale of the company, part of its assets, or a merger with other businesses.

Wall Street generally shares Mehta's opinion: Golar securities have ten "buy" ratings from analysts and only one "hold" advice. The average target price is $55.1, which means the potential growth of a little more than 6% to the value of the securities at the close of trading on April 17.

Other companies that Mehta advises include:

- Oil and gas company ConocoPhillips (dividend yield 2.76%, potential growth of 25% of the closing price on April 17) and oilfield services company Halliburton (dividend yield 1.78%). They, according to the analyst, will benefit from the "bullish" long-term outlook for oil prices. Goldman Sachs noted on April 9: if the Strait of Hormuz does not open for another month, Brent oil prices will reach $100 per barrel and will remain at this mark throughout 2026. For comparison: on Monday, April 20, trading in Brent futures opened with a 5.8% increase to $95.59.

- Oil and gas Permian Resources (dividend yield 3.13%, upside potential 18% at last close). This company is successfully exploring in the US, explains Goldman Sachs.

- Energy company Vistra (dividend yield 0.55%, growth potential 30%). The analyst attributes its prospects to further demand for electrification.