In a report released yesterday, Lloyd Byrne from Jefferies maintained a Buy rating on Sable Offshore (SOC – Research Report), with a price target of $36.00.
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Lloyd Byrne has given his Buy rating due to a combination of factors that suggest a positive outlook for Sable Offshore’s future operations. The recent acquisition of a permit to repair pipeline anomalies in Gaviota State Park marks a significant step forward, allowing the company to proceed with essential repairs and subsequent hydrotesting. This progress is crucial for the anticipated restart of operations, which is expected to begin by the end of the second quarter or the start of the third quarter.
Once operations resume, Sable Offshore plans to bring its platforms online, starting with the Harmony platform, followed by Heritage and Hondo. The company is also focused on commissioning infrastructure at Las Flores Canyon and upgrading the POPCO gas plant. These developments are expected to lead to revenue generation through crude sales. Additionally, consistent operations would enable Sable Offshore to refinance its existing PIK loan, potentially improving its financial position by late third quarter or early fourth quarter of 2025.
Byrne covers the Energy sector, focusing on stocks such as Baker Hughes Company, Suncor Energy, and Civitas Resources. According to TipRanks, Byrne has an average return of 18.1% and a 50.66% success rate on recommended stocks.
In another report released on May 11, TD Cowen also maintained a Buy rating on the stock with a $31.00 price target.