Recently, Goldman Sachs released a research report on the energy, utilities, and mining sectors. It analyzed market trends, investor sentiment, and the performance of sub - sectors, and provided investment recommendations.

Market Sentiment and Macroeconomic Background

The global market is currently under a strong risk - aversion atmosphere. Investors are cautious due to the uncertainty of the economic outlook, with a decline in risk appetite, and they tend to allocate assets defensively.

• Crude Oil Market: The short - term economic slowdown is hitting demand, and the return of OPEC + supply is exacerbating supply - demand concerns. The price of Brent crude oil is at the lower end of Goldman Sachs' forecast range of $70 - 85 per barrel.
• Clean Technology Sector: Rising financing costs are hindering development, and the residential solar energy segment has been significantly impacted. The return on investment is under pressure, and market expansion has slowed down.
• Electricity Demand: The construction progress of AI data centers is slower than expected, and the regulatory policies of FERC are uncertain, making investors more cautious in their investment decisions in the electricity market.

Sector Analysis and Recommended Targets

1. Midstream Energy: Shifting from defense to high beta, focusing on asset quality. The increased demand for AI - related electricity has changed its correlation with technology stocks, and its beta value has increased. The fundamentals of natural gas demand remain stable, and the short - term fluctuations of LNG projects have been reflected in the stock price. Kinder Morgan Inc Class P(KMI.US)  is recommended. Its long - distance pipelines and refined oil product networks provide stable cash flow and low operating risks. Based on a 12 - times 2026 EBITDA valuation, Goldman Sachs gives a target price of $31, and the current stock price is $26.14.
2. Integrated Energy Giants and Refiners: The advantage of the balance sheet is prominent. Stable cash flow and high dividends are key indicators. Chevron Corporation(CVX.US)  is recommended. Its net debt - to - capital ratio is 10%, and the dividend yield is 4.4%. The projects in Kazakhstan and the Gulf of Mexico are progressing well. Based on an 8 - times EV/DACF valuation, Goldman Sachs gives a target price of $183, and the current stock price is $152.95. When oil prices rebound, medium - beta targets such as Canadian Natural Resources Limited(CNQ.US)  and ConocoPhillips(COP.US)  have room for flexibility.
3. Exploration and Production: Dual - basin layout to hedge against fluctuations. Some companies have built a defense system through cash - flow management and hedging strategies. Expand Energy Corp. Ordinary Shares - New(EXE.US)  is recommended. Its dual - basin asset layout diversifies risks, and the "hedging wedge" strategy smoothes price fluctuations. Based on an 8 - times 2026 free - cash - flow valuation, Goldman Sachs gives a target price of $121, and the current stock price is $96.03.
4. Clean Technology: Focusing on utility - scale solar energy. The residential solar energy market is weak, while there are structural opportunities in the utility - scale solar energy market. Nextracker Inc.(NXT.US)  is recommended. Its booking volume in 2025 is leading, and its business risks are diversified. Based on a 15 - times forward P/E valuation, Goldman Sachs gives a target price of $61, and the current stock price is $42.09.
5. Utilities: Grid investment drives defensive growth. Although the demand for AI data centers is slower to materialize, the long - term growth logic remains stable. Southern Company(SO.US)  is recommended. Its growth points are in the transmission investment in Georgia and the pending power generation project tenders. Based on a 21 - times P/E valuation, Goldman Sachs gives a target price of $100, and the current stock price is $88.74.
6. Energy Services: Order visibility locks in earnings. The industry faces policy uncertainties, and the backlog of orders and improved profit margins of some companies provide a defensive buffer. FMC Technologies, Inc.(FTI.US)  is recommended. Its Subsea 2.0 orders drive the expansion of gross profit margins, and it is committed to increasing the EBITDA conversion rate to 50%. Based on a 6.5 - times EV/EBITDA valuation, Goldman Sachs gives a target price of $36, and the current stock price is $26.31.
7. Metals and Mining: The leading - enterprise advantage emerges under the disturbance of trade policies. The industry faces uncertainties such as US tariff policies, and leading enterprises integrate resources and improve cost - control capabilities. Nucor Corporation(NUE.US)  is recommended. It has full - cycle production and market capabilities and strong resilience to market demand. Based on an 8.8 - times EBITDA valuation, Goldman Sachs gives a target price of $177, and the current stock price is $131.99.

Defensive Allocation Requires "Both Defense and Offense"

Goldman Sachs suggests that against the backdrop of the intertwined energy transition and macro - volatility, investors should prioritize targets with stable cash flows, healthy balance sheets, and leadership in niche markets. At the same time, they should pay attention to the flexible opportunities brought about by medium - term supply - demand mismatches (such as the bottom - up rebound of crude oil). The above seven sectors and recommended stocks provide a multi - level defense solution for the current market.