UBS Starts TechnipFMC (FTI) at Buy

UBS initiates coverage on TechnipFMC (NYSE: FTI) with a Buy rating and a price target of $89.00.

The analyst comments: “We initiate FTI at a Buy Rating. FTI is the leading provider of integrated subsea production systems and services, and holds >50% of the world's installed base of subsea equipment on the seafloor. Our positive outlook is driven by a multi-year offshore growth cycle, continued conversion of higher-margin Subsea 2.0 backlog into revenue, and the long-term opportunity for iEPCI 2.0 to extend FTI's industrialization strategy across the broader value chain. We forecast Subsea orders growing to >$11Bn for FY27, and our FY28 EBITDA forecast of $2.77Bn is 5% above Street. We see FTI pricing in $2.25-$2.5Bn of FY28 EBITDA. Shares have risen >50% YTD, benefiting from an offshore activity recovery. However, we see the structural industrialization story still having several years left to run. Our $89 PT is based on 12x FY28 EV/EBITDA”

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 $69.57 yesterday.

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