On Thursday, TD Cowen analysts increased their price target on TechnipFMC shares (NYSE:FTI) to $38 from $37, while maintaining a Buy rating. The revision follows the company’s recent report of another solid quarter and a modest upgrade to its 2025 Subsea guidance. According to InvestingPro data, analysts’ targets for FTI range from $8.50 to $42, with the current stock price at $28.81. The company’s analysis suggests it may be undervalued based on its Fair Value metrics.
TechnipFMC has demonstrated a strong performance, outpacing the Oil Services ETF (OIH) by approximately 400 basis points. With a market capitalization of $12.27 billion and impressive revenue growth of 17.82% in the last twelve months, the company’s solid financial results support this momentum. InvestingPro analysis shows the company maintains a "GOOD" overall financial health score, with particularly strong growth metrics.
TD Cowen’s commentary highlighted that TechnipFMC has been receiving strong orders that are expected to continue beyond 2025. This projection is a positive signal for the company’s future business prospects.
Additionally, concerns regarding vessel availability, which had emerged among investors due to proposed industry consolidation, were addressed. The analyst noted that TechnipFMC does not foresee any issues in this area, providing further reassurance to stakeholders.
The upgrade in the price target and sustained Buy rating reflect TD Cowen’s confidence in TechnipFMC’s operational performance and strategic outlook. The company’s ability to allay investor concerns and exhibit robust order intake positions it favorably within the market.
In other recent news, TechnipFMC has reported impressive financial results for the fourth quarter of 2024, significantly exceeding market expectations. The company achieved earnings per share (EPS) of $0.54, surpassing the forecasted $0.35, and reported revenues of $2.37 billion, which also beat the anticipated $2.3 billion. For the full year, TechnipFMC’s revenue reached $9.1 billion, marking a 16% increase from the previous year, while adjusted EBITDA rose by 47% to nearly $1.4 billion. The company has also received investment-grade ratings from all three major credit agencies, reflecting its strong financial position.
Additionally, TechnipFMC has launched its innovative Subsea 2.0 product architecture, which has been well-received in the market. The company plans to continue focusing on strategic initiatives that are expected to drive further growth. Looking ahead, TechnipFMC projects high single-digit revenue growth for 2025 and anticipates adjusted EBITDA to reach approximately $1.76 billion. Analysts have shown interest in the company’s strategic initiatives, with some expressing confidence in its ability to maintain and potentially improve margins. These developments underscore TechnipFMC’s ongoing commitment to operational excellence and market leadership.
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