Vista Energy SAB (VIST)

Our PAST TOP PICK with VIST has achieved its target at $78.  To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $54) to $62.  

We reiterate VIST, the Mexican based energy producer, as a TOP PICK. Recently reported earnings showed a doubling of EPS and a 59% boost in production - 87% of which is oil.  The recent run up in oil prices will aid next quarter results.  It trades at 9x earnings and supports a 35% ROE.  We recommend trailing up the stop (from $41) to $54, looking to achieve $78 - upside potential over 22%.  Yield 0.2%

The Mexico based oil and gas producer with the largest shale oil operation outside the Americas reported a 33% increase in free cash flow on the back of a 60% increase in oil production.  It trades at 11x earnings, 2.2x book and supports a robust 37% ROE.   Cash reserves are growing aggressively and debt is stable.  We recommend setting a stop-loss at $41, looking to achieve $75 -- upside potential of 35%.  Yield 0% 

Our PAST TOP PICK with VIST has triggered its stop at $39.  To remain disciplined, we recommend covering the position at this time.  This will result in a net investment loss of 19%, when combined with previous guidance.  

We reiterate VIST as a TOP PICK.  The Mexican based energy producer recently announced it has purchased Petronas' 100% interests in Argentina where the companies were partnered.  This will add capital efficiencies and further enhance cash flow in the area they project.  It trades at 10x earnings, 3 times book and supports a robust 33% ROE.  We recommend trailing up the stop (from $35) to $39, looking to achieve $69 -- upside potential of 33%.  Yield 0%

This Mexican based oil and gas producer with production in Argentina as well, recently reported a 50% increase in production and revenues.  It trades at 10x earnings, 2.7x book and supports a ROE of 33%. We recommend setting a stop-loss at $35, looking to achieve $59 — potential upside over 28%. Yield 0.4%