Benchmark Co. analyst Subash Chandra maintained a Buy rating on Sable Offshore (SOC – Research Report) today and set a price target of $37.00.
Subash Chandra has given his Buy rating due to a combination of factors that indicate strong future prospects for Sable Offshore Corp. The company is nearing its first production phase from the Santa Ynez Unit, with expectations for initial sales in June. Despite some remaining challenges, such as obtaining the right-of-entry from Parks & Wildlife and approval from the OSFM, these are anticipated to be resolved in a timely manner.
Additionally, the company plans to refinance its existing debt, potentially lowering its cost of capital. This financial restructuring, coupled with the possibility of redirecting capital towards development drilling, positions SOC for accelerated growth. The staggered commencement of production from its platforms and the resolution of legal and regulatory issues post-production further support the positive outlook, justifying the Buy rating.
In another report released on April 11, Roth MKM also maintained a Buy rating on the stock with a $30.00 price target.