Ecopetrol cut at Citi as political risk has been partially re-priced (EC:NYSE)
Seeking Alpha
Last updated: June 5, 2026
Ecopetrol's stock experienced a slight decline following Citigroup's downgrade from Buy/High Risk to Neutral/High Risk. The firm also set a new price target for the company.
- Citigroup has revised its rating for Ecopetrol (EC) to Neutral/High Risk, down from Buy/High Risk, and established a new price target of $18. This adjustment reflects concerns about the broader Colombian oil and gas sector.
- The downgrade is primarily influenced by a noted structural decline in Colombia's oil and gas production, a trend that has been observed since 2015. This sustained downward trajectory in output is a significant factor impacting Ecopetrol's outlook.
- The analysis from Citigroup suggests that the challenges facing Colombia's energy sector are fundamental and long-term, leading to a more cautious stance on Ecopetrol's investment potential.
- Despite the downgrade, the price target of $18 indicates that Citigroup still sees some value in the company, though it no longer considers it a strong buy opportunity given the prevailing industry conditions.
