Technip Energies: Oddo BHF raises target price
(CercleFinance.com) - Oddo BHF maintains its 'outperform' rating on Technip Energies shares, with a target price raised from E27 to E29 (cp: E22.
5, -5.3%).
The analyst highlights the higher-than-expected net cash position (~E1.2bn vs. ~E0.9bn previously estimated by Oddo) and believes that the targets communicated at the CMD are "very credible".
Thus, the backlog stands at E15.9bn, securing 70% of the 2025 guidance, and around 60% of the order book is to be executed over 2026 and beyond.
The Group expects to convert its EBITDA into FCF (excluding changes in working capital) of 70% to 85% (cumulative FCF of E2.2bn to E2.6bn over 2024/28), the analyst adds, who reports that cash generation could be used for investments to develop TPS's Technologies and Products businesses, and to develop adjacent business models.
We believe that such a strategy is relevant and should improve the Group's margins while ensuring recurring results, he concludes.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
5, -5.3%).
The analyst highlights the higher-than-expected net cash position (~E1.2bn vs. ~E0.9bn previously estimated by Oddo) and believes that the targets communicated at the CMD are "very credible".
Thus, the backlog stands at E15.9bn, securing 70% of the 2025 guidance, and around 60% of the order book is to be executed over 2026 and beyond.
The Group expects to convert its EBITDA into FCF (excluding changes in working capital) of 70% to 85% (cumulative FCF of E2.2bn to E2.6bn over 2024/28), the analyst adds, who reports that cash generation could be used for investments to develop TPS's Technologies and Products businesses, and to develop adjacent business models.
We believe that such a strategy is relevant and should improve the Group's margins while ensuring recurring results, he concludes.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.