David Deckelbaum, an analyst from TD Cowen, maintained the Buy rating on Sable Offshore. The associated price target remains the same with $29.00.
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David Deckelbaum has given his Buy rating due to a combination of factors that highlight Sable Offshore’s strategic positioning and financial maneuvers. The company has demonstrated a proactive approach in managing its cash flow, as evidenced by its recent equity raise and the extension of the XOM note. This financial stability is crucial as SOC navigates the permitting process with the Department of Interior and prepares for offshore production.
Moreover, SOC’s plan to acquire an Offshore Storage and Treating Vessel (OS&T) is expected to yield significant cost savings, enhancing its operational efficiency. The anticipated reduction in operating expenses and transportation costs could result in substantial annual savings, making the company’s future prospects more attractive. Additionally, the resolution of federal approvals and strategic financing initiatives are key catalysts that could drive SOC’s growth, supporting the Buy rating.
According to TipRanks, Deckelbaum is a 3-star analyst with an average return of 3.6% and a 38.12% success rate. Deckelbaum covers the Energy sector, focusing on stocks such as Sable Offshore, APA, and Coterra Energy.
In another report released yesterday, Roth MKM also assigned a Buy rating to the stock with a $22.00 price target.