In 2024, the oil firm's shares soared by more than 150%, while the market celebrated the measures implemented by libertarian president Javier Milei since he took office in December 2023.

JPMorgan analysts upgraded their assessment of Argentina's state-run oil company YPF in a note to clients, saying the energy industry in the South American country has room for further growth as part of the country's "economic transformation."

The US investment bank raised its recommendation on YPF to "overweight" from "neutral", while increasing its target price to $59.50 per American Depositary Receipt from a previous target of $25.00.

In 2024, YPF shares soared more than 150% amid a major rally in Argentine stocks, as market participants celebrated measures implemented by libertarian President Javier Milei since he took office in December 2023.

Markets welcomed the tough austerity and deregulation measures implemented by Milei to try to stabilise public accounts and the Argentine economy as it emerges from a painful recession.

Even after last year's big gains, JPMorgan analysts said they believed the oil and gas sector could grow further as it was crucial to the South American country's "economic transformation."

"We don't think it's too late to invest in Argentina's oil and gas... In our view, it will remain a very interesting space for equity investors in 2025," they said.

YPF's upgrade reflects the company's strong position in the industry and growth opportunities as it shifts its focus from conventional fields to shale, JPMorgan added, as well as more favorable realized oil price assumptions.