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Investing.com - RBC Capital downgraded Saipem (BIT:SPMI) (BIT:SPM) (OTC:SAPMF) from Outperform to Sector Perform on Friday, while lowering its price target to EUR2.75 from EUR3.40.
The Italian oil services company is trading at near record post-2022 levels, supported by a strong backlog, according to RBC Capital.
Despite optimism about the Saipem7 merger and resulting growth opportunities, the investment firm expressed caution about the macroeconomic outlook.
RBC Capital noted that the lengthy timeline to completion tempers expectations for near-term performance, adding that further upside potential from the merger is unlikely to be fully rewarded until the deal is finalized.
The downgrade aligns Saipem’s valuation with Subsea 7 (OTC:SUBCY), which RBC Capital also downgraded to Sector Perform in the same research note.
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