Bank of America Securities Maintains a Sell Rating on Ecopetrol S.A. (EC) With a $7 PT

Ecopetrol S.A. (NYSE:EC) is one of the best stocks under $10 to buy right now. On August 15, analyst Caio Ribeiro of Bank of America Securities maintained a Sell rating on Ecopetrol S.A. (NYSE:EC), with a price target of $7.00.

The analyst gave the rating due to several factors affecting Ecopetrol S.A.’s (NYSE:EC) performance, stating that although the upstream segment showed higher-than-expected results, the downstream and energy transmission & toll roads segments underperformed, which resulted in an overall drop in EBITDA.

Ecopetrol S.A.’s (NYSE:EC) EBIDTA for fiscal Q2 2025 dropped both year-over-year and quarter-over-quarter, failing to meet consensus estimates.

The analyst added that other factors that add to the negative outlook include lower production estimates, difficulties in replenishing reserves, and a challenging macroeconomic environment for the oil and gas industry in Colombia.

Other factors posing considerable hurdles for Ecopetrol S.A. (NYSE:EC), according to the analyst, include lower cash generation and higher lifting costs.

Ecopetrol S.A. (NYSE:EC) explores, develops, and produces crude oil and natural gas. Its operations are divided into the following segments: Exploration and Production, Transportation and Logistics, and Refining and Petrochemicals.

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Disclosure: None. This article is originally published at Insider Monkey.