Bank of America has issued a stark warning for investors in Ecopetrol, estimating that the state-owned oil major's shares could decline by as much as 28% in the near term.
The bank's analysis suggests that despite a wave of optimism in local markets following Abelardo De la Espriella's recent election victory, the stock faces significant headwinds that outweigh political tailwinds.
Ecopetrol shares have already reflected this pressure, completing a third consecutive day of declines on the Bolsa de Valores de Colombia (BVC).
The sustained selling indicates that traders are pricing in structural risks rather than reacting solely to short-term political noise.
Bank of America's projection implies a further repricing of the equity, suggesting that the current market level may still be too high given the company's operational and fiscal challenges.
The divergence between political sentiment and equity performance highlights the complex risk profile of emerging-market energy stocks.