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Sable Offshore’s Production Surge and Financial Upside: A Strong Buy Recommendation

In a report released today, David Deckelbaum from TD Cowen maintained a Buy rating on Sable Offshore (SOCResearch Report), with a price target of $40.00.

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David Deckelbaum has given his Buy rating due to a combination of factors including Sable Offshore’s successful restart of production from the Harmony platform, which has led to a significant increase in production guidance. The company has effectively completed all necessary pipeline repairs and is now positioned to achieve production rates that were not anticipated until 2027. This development has derisked the company’s operations and improved its future outlook.
Additionally, the substantial increase in production has reshaped Sable Offshore’s cash flow potential, allowing for a more optimistic financial forecast. The updated model predicts a significant rise in free cash flow, supporting a higher dividend payout than previously expected. With shares trading at attractive multiples and a higher production base enhancing the company’s net asset value, Deckelbaum sees a strong investment opportunity in Sable Offshore.

In another report released today, Roth MKM also assigned a Buy rating to the stock with a $26.00 price target.

Based on the recent corporate insider activity of 18 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SOC in relation to earlier this year.

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