TechnipFMC: UBS still a buyer - but cuts target to 38 euros.

(CercleFinance.com) - UBS has confirmed its buy rating on the share of the oil services company TechnipFMC, whose quarterly accounts were sanctioned by the stockmarket last week.


According to analysts, the thesis of the group's transformation and its 'recovery' is intact. However, the broker has cut its target price for the share from 43 euros to 38 euros.

Technip and FMC completed their merger in January, with the new group having just published its first quarterly results, UBS says. Despite a relatively unfavourable outlook in the near term, fundamentals are improving, UBS' note points out: indeed, TechnipFMC has a robust balance sheet in terms of net cash. Shareholders will also benefit from the group's recently announced share buyback program of 500 million dollars.

Finally, the stock is trading at a 2018 EV/EBITDA multiple of 7.1x, which represents a discount relative to the group's European and American peers, as well as relative to historical averages, UBS calculates.


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