In a report released today, Hamed Khorsand from BWS Financial maintained a Sell rating on Sable Offshore (SOC – Research Report), with a price target of $6.00.
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Hamed Khorsand has given his Sell rating due to a combination of factors impacting Sable Offshore’s financial and operational outlook. The company’s cash reserves have dwindled to $189 million, yet there is no oil production underway, which raises concerns about its ability to generate revenue in the near term.
Furthermore, while Sable Offshore plans to commence production in the second quarter of 2025, the necessary permits to achieve this milestone have not been secured, casting doubt on the feasibility of this timeline. Additionally, despite some positive news regarding access to Gaviota State Park for pipeline repairs, unresolved regulatory issues persist, including one that was not mentioned in the company’s recent 10Q filing, adding further uncertainty to the company’s prospects.