Goldman Sachs puts out list of 'buy'-rated energy stocks; one is a mid cap

Goldman Sachs has advised investors to look at five energy stocks, including one in the mid-cap segment, CNBC reported. Goldman Sachs analyst Neil Mehta published a note on Friday after Iran announced the “complete” reopening of the Strait of Hormuz to commercial shipping. At the same time, Trump said the U.S. blockade of Iranian ports and vessels remained in place.

On Friday, oil prices fell sharply, but then rebounded on Monday amid renewed escalation in the conflict. “We recognize there is significant geopolitical and commodity volatility, but these are ideas that we believe are fundamentally underpinned at our mid-cycle views,” Mehta said.

Goldman Sachs’ list includes companies that pay "solid" dividends, and four of the five stocks offer at least 16% upside, according to the bank’s estimates.

Golar LNG, a Bermuda-based liquefied natural gas infrastructure company, offers a dividend yield of about 1.9%, with a target price of $60 per share implying roughly 16% upside versus the Friday close, when the company’s market capitalization stood at $5.28 billion.

Until recently, Golar LNG operated two business segments: floating LNG liquefaction terminals and floating storage and regasification units. In late February, the company said it would focus exclusively on the former.

Energy is required to support artificial intelligence and data center buildouts, which can be supplied by LNG, the company said at the time. In addition, geopolitical developments in Europe and the Middle East “have once again highlighted the risks to security of global energy supply caused by over dependence on a single supplier or on freedom of navigation,” according to the press release.

A month later, Golar said it had appointed Goldman Sachs to evaluate its FLNG business and outline development plans. At the same time, the company said it does not rule out a sale of the business, a disposal of assets, or a merger.

Wall Street broadly shares Mehta’s view: the stock has 10 “buy” ratings versus one “hold.” The average target price is $55.10 per share, implying just over 6% upside versus the Friday close.

Among the other companies Mehta recommends are ConocoPhillips (dividend yield: 2.76%; upside: 25%) and Halliburton (dividend yield: 1.78%). The companies stand to benefit from a bullish long-term oil outlook, according to the analyst. Goldman Sachs said on April 9 that if the Strait of Hormuz remains closed for another month, Brent crude prices could reach $100 per barrel and remain at that level throughout 2026. For comparison, Brent futures rose 5.8% to $95.59 on Monday.

Permian Resources (dividend yield: 3.13%; upside: 18%). The company is executing well in U.S. exploration and production, Goldman Sachs said.

Vistra (dividend yield: 0.55%; upside: 30%). The analyst links its outlook to continued demand driven by electrification.