Denmark's Saxo Bank believes the long-term outlook for oil and gas companies appears bleak, but that's not to say there isn't a strategy for investors to consider over the next 12 months.
It comes as the bank's head of equity strategy says energy stocks have outperformed global equities by 24% since the market first received encouraging Covid-19 vaccine news from Pfizer-BioNTech on Nov. 9.
Saxo Bank's Peter Garnry said this underscored the perception that investors were positioning themselves for a market normalization in 2021.
Oil and gas companies "are assets you just can't touch if you believe in ESG, which is becoming a bigger and bigger part of the asset management industry (and) that's holding back valuation on oil and gas industries," Garnry told CNBC's "Squawk Box Europe" on Wednesday.
"But I think there is a tactical play here."