Bullish indicating open at $55-$60, IPO prices at $37
On Thursday, Sable Offshore Corp. (NYSE: SOC) maintained its Buy rating and $47.00 price target from Benchmark, following legal developments in California. The stock, currently trading at $27.70, has experienced a 13.63% decline over the past week, according to InvestingPro data. The Superior Court of California recently issued an injunction related to a case against the California Coastal Commission involving the company.
Sable Offshore’s stock rating remains unchanged by Benchmark analysts despite the court’s decision. The analysts expressed their view that the injunction would not alter Sable Offshore’s timeline to begin production. They anticipate that the company will seek to appeal the injunction and potentially the Cease & Desist Order that has been issued.
The legal situation stems from a dispute with the California Coastal Commission, which has now reached the state’s Superior Court. The specifics of the case involve injunctions on certain activities by Sable Offshore, although details on the nature of these activities were not disclosed.
In a statement, Benchmark analyst Subash Chandra said, "We don’t believe this will change the path to first production. Rather, we expect SOC to appeal the injunction and/or appeal the Cease & Desist Order." This suggests that Benchmark analysts foresee a manageable legal process ahead for Sable Offshore, without significant deviation from the company’s production goals.
The company’s response to the injunction, according to Benchmark, will likely involve legal appeals. Sable Offshore’s strategy could include challenging both the injunction itself and the broader Cease & Desist Order that has been put in place by the California Coastal Commission.
The current situation places Sable Offshore in a position where its operational plans are intertwined with ongoing legal proceedings. The outcome of these proceedings, as well as the company’s response, will be closely watched by investors and industry observers alike.
In other recent news, Sable Offshore Corp has successfully completed hydrotesting for its Onshore Pipeline, consisting of Line 324 and Line 325, marking a significant milestone towards resuming operations. This development follows the company’s announcement of a public offering of $200 million in common stock, with an additional option for underwriters to purchase $30 million more, aimed at funding capital expenditures and general corporate purposes. In regulatory matters, a preliminary injunction by the California Coastal Commission has halted Sable Offshore’s pipeline repair activities in Santa Barbara County, highlighting ongoing legal challenges. Analysts from TD Cowen have maintained a Buy rating with a $40 price target, noting the company’s compliance with safety requirements and the potential for revenue generation in the third quarter of 2025. Benchmark analysts have also raised their price target for Sable Offshore to $47, citing improved production guidance and cost efficiencies. The company has completed flow-testing six wells and is preparing for pipeline commissioning, which could lead to a significant increase in production. These developments come as Sable Offshore navigates regulatory hurdles and plans for future growth, with potential dividends anticipated in 2026.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.