EC Should I Buy
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Ecopetrol SA is not a strong buy at the moment for a beginner investor with a long-term strategy. The technical indicators are mixed, the options data shows a bearish sentiment, and the financial performance is declining. Additionally, there are governance concerns and no significant positive catalysts to outweigh the risks.
The MACD is above 0 but positively contracting, indicating weakening bullish momentum. The RSI is neutral at 67.181, and the moving averages are bullish (SMA_5 > SMA_20 > SMA_200). However, the stock is trading near resistance levels (R1: 15.181), suggesting limited immediate upside.
The company's board reaffirmed its commitment to transparency and governance. Additionally, there are no reported violations or breaches of credit agreements.
Governance concerns have been raised, with the USO union calling for the resignation of the company's president. Financial performance is declining, with revenue and net income dropping significantly YoY. Analysts have mixed ratings, with some downgrades and price targets below the current price.
In 2025/Q3, revenue dropped by -11.80% YoY, net income decreased by -28.16% YoY, and gross margin fell by -3.36% YoY. EPS remained flat at 0.02.
Analysts have mixed views. Goldman Sachs and HSBC raised price targets to $13 but maintained Neutral and Hold ratings, respectively. Bradesco BBI downgraded the stock to Underperform with a price target of $12.
