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Investing.com - Piper Sandler raised its price target on TechnipFMC (NYSE:FTI) to $49.00 from $48.00 on Friday, while maintaining an Overweight rating on the energy services company. The stock, currently trading at $40.92, has demonstrated strong momentum with a 31% return over the past six months. According to InvestingPro analysis, TechnipFMC boasts a perfect Piotroski Score of 9, indicating excellent financial strength.
The price target adjustment follows TechnipFMC’s announcement of its 2026 Subsea margin guidance of 20.5-22%, with the 21.25% midpoint exceeding the current consensus of 20.7%. This news helped drive the stock 9% higher, outperforming the OIH index which rose 5%. The company’s current gross profit margin stands at 21.08%, with InvestingPro data showing robust revenue growth of 11.75% over the last twelve months.
Several factors are expected to drive the margin improvement, including increasing Subsea 2.0 flow-through (40%), growing Subsea 2.0 and iEPCI orders, and legacy priced backlog reducing to below 10%.
TechnipFMC also raised its full-year 2025 free cash flow target by 20% to $1.375 billion at the midpoint and increased its full-year 2025 percentage of free cash flow target to more than 70% for shareholder returns.
CEO Doug Pferdehirt acknowledged the significant opportunity to expand the 2.0 mindset beyond SPS to SURF/installation, which Piper Sandler identified as a potential future catalyst for the company.
In other recent news, TechnipFMC has announced a significant expansion of its share buyback program, authorizing an additional $2 billion in share repurchases. The company also declared a quarterly cash dividend of $0.05 per share, payable in December 2025. TechnipFMC has secured a substantial subsea contract from ExxonMobil Guyana Limited for their Hammerhead development, valued between $250 million and $500 million. This contract involves providing subsea production systems, including equipment from the company’s Subsea 2.0 platform.
Analysts have shown optimism about TechnipFMC’s prospects, with Evercore ISI raising its price target to $48 and maintaining an Outperform rating. Piper Sandler also increased its price target to $48, highlighting the company’s efforts to reduce offshore development cycle times. The company’s growing backlog, which increased by 14% year-over-year, has been a focal point for analysts, dispelling concerns about the sustainability of the offshore subsea cycle. Piper Sandler reiterated its Overweight rating, noting TechnipFMC’s stock performance has significantly outpaced the OIH oil services index over the past year.
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