(CercleFinance.com) – The stock continues to rise today with a gain of almost 2% (+3.4% yesterday). In a sector note, Oddo BHF indicates that it favors Technip Energies (with an ‘outperformance’ opinion and a price target of 18 euros), as well as its peers Schlumberger and Subsea 7, within the oil services sector.
‘By the end of 2022, oil demand will exceed that recorded before the health crisis! It is now clear that the energy transition will take time to materialize and that oil and gas will remain essential’, underlines the analyst.
‘After years of under-investment, it is no longer taboo to ask the question of a new supercycle in oil services,’ he continues, recalling that during the previous bull cycle (2009/14), the oil services index jumped 156%.
Jefferies also initiates coverage of Technip Energies with a ‘buy’ advice and a price target of 18 euros, believing that ‘dominant execution capabilities in LNG put it in good stead for a resurgence in final investment decisions’ .
“A growing presence in low-carbon markets with a clear pull in hydrogen and CCUS (carbon capture, use and storage) charts a realistic path to growth,” the broker adds.
Finally, Jefferies finds the ‘sum-of-the-parts’ valuation attractive using five-year average EBIT peer multiples, even before considering the upside potential in low-carbon markets.
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