(Finance) – Equity has increased a 2.30 euros per share (+2%) il target price on Saipema services and solutions company for the energy and infrastructure sector, confirming the recommendation on the title to “Hold“.
Analysts point out that in September the Offshore E&C order collection was abundant (7 billion dollars) thanks to the two oil projects in Saudi Arabia and the gas project in Qatar. A book-to-bill ratio of 2x is estimated for 3Q24. The use of the offshore construction fleet – practically at full capacity in 2024-25 – could be close to full use also in 2026 thanks to the recent collection of orders.
Regarding estimates, the new projects improve FY25 visibility and lead Equita to increase FY26 based on a higher rate of utilization of the production capacity of naval vessels (offshore E&C) in that period. New estimates group FY26: revenue at 14.4 billion euros (confirmed) vs consensus at 14.2; EBITDA at 1.615 million euros (+3% vs previous estimate) vs consensus at 1.657; net profit at 528 million euros (+7% vs previous estimate) vs consensus at 592.
Despite the awarding of contracts in September, the stock has corrected 7% in the last month due to the implications of the weakness of Brent. Equita reports that the 53 billion euro pipeline of projects is made up of half of gas projects, 30% of downstream/low carbon projects and 20% of oil projects.