Jefferies Downgrades TechnipFMC (FTI) to Underperform

Jefferies analyst Mark Wilson downgraded TechnipFMC (NYSE: FTI) from Hold to Underperform with a price target of $6.00 (from $7.00).

The analyst comments "Our estimates decrease materially post 1Q results (Exhibit 1) with Subsea in particular expecting a q/q "sequential decline in adj. EBITDA margin". In valuation terms we move our usual 3-method average closer to our more punitive DCF valuation seeing 12% WACC validated by macro uncertainty & this specific debt covenant question. Our Adj earnings need >25x in 2021/22 to reach current levels (cons c.15x). Strategically, with no timeline to separation other than "when markets sufficiently recover" corporate flexibility must be hindered as parallel management processes are retained in anticipation of such an event."

For an analyst ratings summary and ratings history on TechnipFMC click here. For more ratings news on TechnipFMC click here.

Shares of TechnipFMC closed at $6.88 yesterday.

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