Should I Buy TALO? TALO 2026 Analysis

Should You Buy Talos Energy Inc (TALO) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

12.110

1 Day change

2.71%

52 Week Range

12.350

Analysis Updated At

2026/01/26

Talos Energy Inc. (TALO) is not a strong buy at the moment for a beginner investor with a long-term strategy. While there are some positive developments, such as the extended credit agreement and bullish technical indicators, the company's financial performance is weak, with significant declines in revenue, net income, and EPS. Additionally, there are no strong proprietary trading signals or recent congress trading data to support an immediate buy decision. The stock may be better suited for investors willing to wait for improved financial performance or clearer long-term catalysts.

Technical Analysis

The technical indicators show a bullish trend with the MACD histogram positive and expanding, RSI in the neutral zone, and moving averages in a bullish alignment (SMA_5 > SMA_20 > SMA_200). The stock is trading near its pivot level of $11.469, with resistance at $12.072 and support at $10.865.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

Extended $700 million credit agreement with maturity date extended to 2030, enhancing financial flexibility.
Positive sentiment from analysts, with multiple price target increases and Buy ratings.
Bullish technical indicators suggest potential for upward price movement.

Neutral/Negative Catalysts

Weak financial performance in Q3 2025, with significant YoY declines in revenue (-11.63%), net income (-208.77%), and EPS (-212.24%).
Limited recent trading activity from hedge funds and insiders, indicating neutral sentiment.
No strong proprietary trading signals or congress trading data to support immediate action.

Financial Performance

Talos Energy's Q3 2025 financials show a significant decline in performance: Revenue dropped to $450.05M (-11.63% YoY), Net Income fell to -$95.91M (-208.77% YoY), EPS dropped to -$0.55 (-212.24% YoY), and Gross Margin decreased to 11.91 (-15.11% YoY).

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts have a generally positive outlook on Talos Energy, with multiple firms raising price targets recently. Citi increased the target to $14, Roth Capital to $11, Mizuho to $14, and KeyBanc to $13.50. Analysts highlight the company's potential in the Zama oil project and improved management strategies, but some remain cautious due to broader market sentiment on oil and gas oversupply.

6 Analyst Rating

Wall Street analysts forecast TALO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TALO is 13.92 USD with a low forecast of 11 USD and a high forecast of 20 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

4 Buy

2 Hold

0 Sell

Moderate Buy

Current: 11.790

Low

Averages

13.92

High

Current: 11.790

Low

Averages

13.92

High

Citi

Buy

upgrade

$12 -> $14

AI Analysis

2026-01-23

Reason

Citi

Price Target

$12 -> $14

AI Analysis

2026-01-23

upgrade

Buy

Reason

Citi raised the firm's price target on Talos Energy to $14 from $12 and keeps a Buy rating on the shares.

Roth Capital

Leo Mariani

Buy

maintain

$11

2025-12-31

Reason

Roth Capital

Leo Mariani

Price Target

$11

2025-12-31

maintain

Buy

Reason

Roth Capital analyst Leo Mariani notes that Britain's Harbour Energy announced that it has been named operator of the Zama oil field in Mexico, after project partners Pemex, Grupo Carso and Talos Energy agreed to the appointment. Harbour said that next steps will be the completion of engineering and design work in 2026. Talos currently owns an effective 3.5% interest in the Zama oil project. Roth thinks this will be a positive for the project as it may finally get it moving after many years of indecision. Overall, the firm expects Talos to have a slightly positive reaction vs. peers today. Roth has a Buy rating on Talos with a price target of $11 on the shares.

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TALO Should I Buy

TALO Should I Buy

Should You Buy Talos Energy Inc (TALO) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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