Analyst Guilherme Levy of Morgan Stanley maintained a Buy rating on Subsea 7, with a price target of NOK240.00.
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Guilherme Levy has given his Buy rating due to a combination of factors surrounding Subsea 7’s recent developments. The company secured a significant contract for the third phase of the Sakarya field project, which is expected to generate substantial revenue, ranging from $750 million to $1.25 billion. This contract aligns with the company’s previous involvement in the earlier phases of the project, indicating consistent performance and strategic positioning in the industry.
Additionally, the timing of the contract award was anticipated based on management’s previous communications, suggesting effective execution of their strategic plans. Despite the contract announcement not being entirely unexpected, it is still viewed as a positive development that could lead to a favorable market reaction. This reinforces the confidence in Subsea 7’s growth prospects and underpins the Buy rating.
In another report released on August 21, Citi also maintained a Buy rating on the stock with a NOK248.00 price target.