Analyst David Deckelbaum from TD Cowen maintained a Buy rating on Sable Offshore and keeping the price target at $40.00.
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David Deckelbaum has given his Buy rating due to a combination of factors that suggest a positive outlook for Sable Offshore’s stock. The company is on the verge of resuming production at the Santa Ynez Unit, which is expected to significantly impact its near-term share direction. Despite a slight delay in the anticipated production start date from August to September, Sable Offshore continues to meet expectations by flowing substantial oil volumes into storage.
The company’s financial position remains robust, with a cash reserve of approximately $283 million, even after incurring significant expenses for pipeline repairs and legal fees. The anticipated capital expenditure required to restart production aligns with previous estimates, reinforcing confidence in the company’s financial management. Additionally, the resolution of regulatory hurdles with CalFire is expected soon, which will allow the recommissioning of pipelines crucial for achieving production targets. These factors collectively support the Buy rating, with a price target maintained at $40 per share.
In another report released today, Roth MKM also maintained a Buy rating on the stock with a $34.00 price target.