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.


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