Goldman Sachs Starts TechnipFMC (FTI) at Buy

Goldman Sachs analyst Ati Modak initiates coverage on TechnipFMC (NYSE: FTI) with a Buy rating and a price target of $38.00.

The analyst comments "We are initiating coverage on FTI with a Buy rating and $38 price target, implying 23% upside from current levels. In the current environment where there are moderating activity expectations and macro themes are less clear, we continue to prefer stocks with clear idiosyncratic drivers. Our Buy rating for FTI is underpinned by our view that the company's differentiated offerings and revenue model will support above peer growth. As the only fully integrated subsea solutions provider, we believe FTI is best positioned to capture significant opportunities in the market. We additionally believe FTI's first mover advantage lends itself to approximately 70% of subsea orders being direct awards, which we believe the company can drive higher based on its market leading position. As such, we estimate ~4% subsea order growth, on average, between 2024-2027 and estimate an ~8% revenue CAGR vs peers at ~2% over the same period. We additionally believe FTI's differentiated configured-to-order operating model should support margin expansion as incremental Subsea 2.0 projects are converted from backlog. As such, we estimate FTI can achieve long-term EBITDA margins of ~21%. Given these idiosyncratic drivers, we see potential for positive estimate revisions which we expect will support share performance from current levels."

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 $30.93 yesterday.

You May Also Be Interested In

• Ashland said to explore sale amid takeover interest - Bloomberg
• Syntholene Energy upsizes private placement offering to $2.3M
• Evommune, Inc. (EVMN) Misses Q2 EPS by 20c