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Investing.com - Jefferies raised its price target on TechnipFMC (NYSE:FTI) to $50.00 from $47.00 on Monday, while maintaining a Buy rating on the stock. The company is currently trading at $41.35, just 3% below its 52-week high of $42.65, according to InvestingPro data.
The price target increase represents a 6% boost and follows guidance upgrades announced during TechnipFMC’s third-quarter 2025 results. The company’s attractive PEG ratio of 0.29 suggests it’s trading at a low P/E relative to its growth rate.
Jefferies highlighted that TechnipFMC has increased direct shareholder returns by 30% to more than $1 billion annually, representing approximately an 8% yield.
The company has improved its EBITDA to free cash flow conversion to "more like 55%" up from the previous 50%, while reiterating its commitment to return "at least 70% of FCF" to shareholders.
Jefferies noted that TechnipFMC has consistently outperformed these metrics, with share buybacks, resilience in Subsea markets, and product/strategy advantages contributing to its positive outlook. The stock has delivered an impressive 58.4% return over the past year and appears slightly undervalued based on InvestingPro Fair Value assessment. For a comprehensive analysis of TechnipFMC and access to all 11 ProTips, check out the Pro Research Report available on InvestingPro.
In other recent news, TechnipFMC reported third-quarter results that did not meet analyst expectations, posting a clean EBIT of EUR125 million compared to the consensus forecast of EUR137 million. Despite this, several analyst firms have expressed optimism about the company’s future. RBC Capital raised its price target for TechnipFMC to $47, citing strong third-quarter orders and promising guidance for 2026 Subsea margins. Similarly, Piper Sandler increased its price target to $49, highlighting the company’s 2026 Subsea margin guidance, which exceeded current consensus expectations. Evercore ISI also raised its price target to $48, emphasizing TechnipFMC’s structural operating model changes and a growing backlog, which increased 14% year-over-year. Additionally, TechnipFMC announced an authorization for $2 billion in share repurchases and declared a quarterly cash dividend of $0.05 per share. These developments indicate a mix of challenges and opportunities for the company moving forward.
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