TechnipFMC: Oddo BHF still says 'reduce'

(CercleFinance.com) - Oddo BHF maintains its "reduce" rating on the TechnipFMC share, along with its target price of 15.
1 euros, considering that the share's risk-return is not attractive, after the group, which is currently splitting, announced heavy asset impairments.

The broker says that the oil services group will book impairments of 2.4 billion dollars (or 32% of its current market capitalisation), largely as a result of its poor stockmarket performance and changes in outlook for the North American market.

The broker mainly justifies its "reduce" rating due to the risk of a significant flowback on Technip Energies after the operation and by the lack of visibility on cash distribution between the two future entities.


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