Sable Offshore’s Strategic Growth and Production Restart Boosts Buy Rating

Analyst David Deckelbaum of TD Cowen maintained a Buy rating on Sable Offshore (SOC – Research Report), retaining the price target of $31.00.

David Deckelbaum has given his Buy rating due to a combination of factors that highlight Sable Offshore’s strategic position and potential for growth. The company has maintained sufficient cash reserves to complete necessary pipeline repairs, which are crucial for restarting production at the Santa Ynez Unit. The recent exemption granted by the California Department of Parks and Recreation for final repair work is a positive development, indicating progress towards resuming operations.
Deckelbaum anticipates that Sable Offshore will begin production from the Harmony platform in the second quarter, with expectations of reaching a production target of 28 MBOED by the end of 2025. The company’s ability to potentially produce off the Harmony platform into onshore storage tanks could expedite the sales cycle, showcasing operational efficiency. Despite some procedural risks, the anticipated restart and the de-risking of production capabilities are seen as significant catalysts for the stock, supporting the Buy rating.

In another report released on May 9, Roth MKM also maintained a Buy rating on the stock with a $26.00 price target.