Aker Solutions shares target raised, rating held by RBC Capital

Published 16/07/2024, 16:52
Aker Solutions shares target raised, rating held by RBC Capital

On Tuesday, RBC Capital made an adjustment to the stock price target of Aker Solutions ASA (AKSO:NO) (OTC: AKRTF), increasing it to NOK 53.00 from the previous NOK 45.00. The firm has maintained a Sector Perform rating on the shares of the Norwegian oil services company.

The revision in the stock price target comes as a reflection of Aker Solutions' higher backlog and secured revenue projections for the upcoming year. Specifically, the company has reported a backlog of NOK 33.3 billion for the fiscal year 2025, a notable increase from NOK 28.5 billion for fiscal year 2024, assessed 12 months earlier.

The analyst from RBC Capital acknowledged some uncertainties in Aker Solutions' strategy following its deal with Schlumberger (NYSE:SLB) and as the contracts with Aker BP (NYSE:BP) approach maturity. Despite these concerns, the analyst noted that the risks are balanced by the company's consistent operational performance and the growth in its backlog.

Aker Solutions' increased backlog indicates a robust pipeline of future work, which is a critical factor for the company's revenue and stability. This is particularly significant as the energy sector continues to navigate through various market challenges and transitions.

The updated stock price target suggests that RBC Capital sees potential in Aker Solutions' ability to maintain its business momentum, despite the strategic uncertainties that lie ahead. The company's performance and backlog development will continue to be key indicators for investors monitoring its progress in the competitive oil services market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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