Gregory Lewis, an analyst from BTIG, reiterated the Buy rating on TechnipFMC (FTI – Research Report). The associated price target remains the same with $33.00.
Gregory Lewis has given his Buy rating due to a combination of factors that highlight TechnipFMC’s strong financial performance and strategic positioning. The company’s first-quarter earnings report showed a robust adjusted EBITDA of approximately $335 million, aligning closely with market expectations despite some foreign exchange challenges. The Subsea segment, a key area for TechnipFMC, demonstrated impressive growth with a substantial backlog of $14.9 billion, driven by significant orders from major projects in Brazil and the North Sea.
Furthermore, TechnipFMC’s Surface segment showed resilience, with revenues slightly exceeding expectations and a strong order flow that increased the segment’s backlog. The company’s commitment to returning cash to shareholders, evidenced by a significant share repurchase program and increased free cash flow expectations, further supports the positive outlook. Additionally, the strengthening of the balance sheet and a recent credit upgrade enhance the company’s financial stability, making TechnipFMC an attractive investment opportunity at its current valuation.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $37.00 price target.
Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FTI in relation to earlier this year.