Analyst Guilherme Levy from Morgan Stanley maintained a Hold rating on Technip Energies NV and keeping the price target at €33.00.
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Guilherme Levy has given his Hold rating due to a combination of factors surrounding Technip Energies NV’s recent strategic decisions and financial positioning. The company announced its plan to acquire the advanced materials and catalysts business of Ecovyst for $556 million, which aligns with its strategy to enhance its technology offerings in the TPS segment. This acquisition is expected to close in the first quarter of 2026 and is projected to increase the contribution of TPS to the company’s total EBITDA.
Despite the strategic alignment and the company’s strong balance sheet, the acquisition’s EV/EBITDA multiple of approximately 10x is slightly above Technip’s current trading multiple of around 9x NTM EV/EBITDA. Levy suggests that while the acquisition is consistent with the business profile, the current share prices necessitate an increase in TPS’s percentage within the total group to justify these multiples. Thus, the Hold rating reflects a balanced view of potential growth against current valuation metrics.