Technip Energies: Oddo BHF raises its target price

(CercleFinance.com) - Oddo BHF maintains its 'outperform' rating on Technip Energies shares, with a price target raised from €27 to €29.


The analyst highlights the higher-than-expected net cash position (~E1.2 bn vs. ~E0.9 bn previously estimated by Oddo) and believes that the targets communicated at the CMD are "very credible".

Thus, the backlog stands at 15.9 BnE, 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 between 70/85% (cumulative FCF of between E2.2/2.6 bn over 2024/28)', adds the analyst, 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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