SBM Offshore NV’s Promising Outlook: Strategic Flexibility and Financial Strength Justify Buy Rating

In a report released yesterday, Guilherme Levy from Morgan Stanley maintained a Buy rating on SBM Offshore NV, with a price target of €29.00.

Guilherme Levy has given his Buy rating due to a combination of factors that highlight SBM Offshore NV’s promising outlook. Firstly, the company maintains a robust pipeline of premium offshore projects, with 16 prospects that continue to advance despite macroeconomic volatility. This resilience in project progression suggests a stable future for SBM’s operations. Additionally, the shift in SBM’s commercial model towards a mix of ‘sale and operate’ and ‘lease and operate’ units indicates strategic flexibility, which could enhance financial performance.
Moreover, SBM’s strong cash position, with a cumulative $1.1 billion available until 2030, offers potential for increased shareholder remuneration or business growth. This financial strength is further bolstered by the possibility of new project awards in 2026, which could lead to additional cash inflows. These factors collectively suggest that SBM Offshore NV is well-positioned for future success, justifying Levy’s Buy rating.