Bank of America has retained its underperform rating on Ecopetrol, projecting that shares could decline by nearly 30% in the near term.
The bank’s latest note maintains a bearish stance on the Colombian state-owned oil major, arguing that fundamental risks outweigh the positive sentiment generated by Colombia’s recent election of a market-friendly president.
The analyst report suggests that despite the political shift, Ecopetrol faces persistent structural challenges that continue to weigh on its valuation.
Investors had hoped the new administration would accelerate reforms and improve the investment climate, but Bank of America’s analysis indicates that these benefits are not yet sufficient to offset the company’s operational and financial pressures.
This divergence between political optimism and analyst caution highlights the complex risk profile of Latin American energy stocks.
While broader regional sentiment may be improving, company-specific fundamentals remain the primary driver for Ecopetrol’s equity performance.