TechnipFMC: Berenberg clearly likes plan to split
(CercleFinance.com) - Berenberg reinstates its "buy" rating on the TechnipFMC share, along with its target price of 29 dollars (or 26 euros), after the announcement of its plan to split into two companies, via an onshore/offshore segment split in the first half of 2020.
"Ultimately, we believe that the company is substantially undervalued currently by the market, and this transaction therefore could help to highlight and release value for the group," the broker said in its note.
It adds, "The subsea business could potentially attract the premium valuation it deserves, and the SpinCo can be rewarded for the exceptional LNG backlog it has recently won".
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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.
"Ultimately, we believe that the company is substantially undervalued currently by the market, and this transaction therefore could help to highlight and release value for the group," the broker said in its note.
It adds, "The subsea business could potentially attract the premium valuation it deserves, and the SpinCo can be rewarded for the exceptional LNG backlog it has recently won".
Copyright (c) 2019 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.