In a report released today, Samantha Hoh from HSBC upgraded TechnipFMC (FTI – Research Report) to a Buy, with a price target of $32.00.
Samantha Hoh has given her Buy rating due to a combination of factors including TechnipFMC’s impressive financial performance and strategic positioning. The company reported strong third-quarter results, surpassing expectations in revenue, EBITDA, and earnings per share, with significant improvements in EBITDA margins across both the Subsea and Surface Technologies segments. This robust financial performance is supported by a record subsea backlog at improved margins, which is expected to drive substantial cash flow for dividends and share buybacks.
Additionally, the company’s strategic focus on energy transition, particularly in CO2 transportation and storage, positions it well for future growth. Despite challenges in the oil market, TechnipFMC secured $2.8 billion in new orders, primarily in its Subsea segment, and the management is optimistic about achieving almost $10 billion in subsea bookings for the year. The company’s strong cash flow generation and a new $1.0 billion share repurchase authorization further underpin the Buy rating, as it anticipates doubling dividends and share buybacks compared to the previous year.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $37.00 price target.
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TechnipFMC (FTI) Company Description:
TechnipFMC Plc is an energy service company, which engages in the provision of solutions for the production and transformation of hydrocarbons. It operates through the following segments: Subsea, Onshore & Offshore, and Surface Technologies. The Subsea segment engages in designing, engineering, procurement, manufacturing, fabrication and installation, and life of field services for subsea systems, subsea field infrastructure, and subsea pipe systems used in oil and gas production and transportation. The Onshore & Offshore segment offers designing and project development services. The Surface Technologies segment designs and manufactures products & systems, and provides services used by oil and gas companies involved in land and offshore exploration and production of crude oil and natural gas. The company was founded on December 9, 2015 and is headquartered in London, the United Kingdom.
