TechnipFMC seems to be stepping into a promising phase in the subsea oil and gas sector, as pointed out by Goldman Sachs. On Thursday, Goldman began its analysis of TechnipFMC with a favorable buy recommendation, setting a price target of $38 for the next 12 months. This target suggests a potential upside of more than 20% from its latest closing price of $30.88 per share. Although the company is headquartered in London, its operations are rooted in Houston, specializing in the manufacture of equipment used for underwater fossil fuel extraction. Currently, TechnipFMC boasts a market cap of roughly $13 billion, having seen its stock skyrocket by over 50% this year.
Goldman Sachs highlights that TechnipFMC uniquely stands out in the industry by being the sole provider of fully integrated, turnkey solutions tailored for its clients. This capability enables the company to streamline its processes, cutting down project lead times—a significant competitive edge cited by the Wall Street firm. In a market environment where timely procurement of subsea products is critical, Goldman Sachs, led by analyst Ati Modak, conveyed to clients their belief that TechnipFMC is exceptionally well-positioned to secure additional orders as they arise.
