Morgan Stanley analyst Guilherme Levy has maintained their bullish stance on 0OGK stock, giving a Buy rating on February 24.
Guilherme Levy has given his Buy rating due to a combination of factors that highlight Subsea 7’s strong performance and strategic moves. The company’s adjusted EBITDA surpassed expectations by approximately 10%, indicating robust operational efficiency. Although net income fell short due to impairment charges and non-cash foreign exchange losses, the Renewables segment showed significant margin improvement, expanding from around 16% to 21%.
Moreover, the order intake of $2.3 billion exceeded expectations, contributing to a substantial backlog of approximately $11.2 billion, aligning well with forecasts. The company’s free cash flow, adjusted for working capital movements, was in line with projections, and a notable working capital release helped reduce net debt significantly. Additionally, the announcement of dividends and the proposed merger with Saipem further support the positive outlook for Subsea 7, making it an attractive investment opportunity.
In another report released on February 24, Kepler Capital also maintained a Buy rating on the stock with a NOK290.00 price target.