BofA Says Ended Moeve JV Talks Overshadow Galp Energia's Q3 Beat; Estimates Up

02:56 AM EDT, 10/28/2026 (MT Newswires) -- BofA Global Research raised its earnings forecasts for Galp Energia (GALP.LS) following a better-than-expected third-quarter performance, even as the end of downstream combination talks with Spain's Moeve stole the spotlight. "Galp's 3Q26 results beat consensus, as we expected, by 8% on net income. All divisions posted a positive delta: Commercial the biggest beat at 25%. Yet results were overshadowed as talks to form a downstream JV with Moeve concluded with no deal. Financial terms were never concluded and thereby no clear value creation or accretion from the talks could have been assessed. But investor feedback indicated a positive view of Galp leaning into and simplifying towards its upstream growth equity story. This had raised investor expectations for M&A interest in Galp and or its underlying assets," analysts said Tuesday. Meanwhile, the research firm reiterated its buy rating and 24.50-euro price target on the Portuguese energy group, highlighting the quality and depth of its upstream portfolio as key long-term growth drivers. BofA expects production to grow 9% year over year into full-year 2027 to 144,000 barrels of oil equivalent per day via Bacalhau, while lifting its EBITDA estimates by 1% to 2% on the strength of the company's commercial business. Analysts also boosted their EPS projections for 2026 through 2028.