Analyst Hamed Khorsand of BWS Financial maintained a Sell rating on Sable Offshore (SOC – Research Report), retaining the price target of $6.00.
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Hamed Khorsand has given his Sell rating due to a combination of factors impacting Sable Offshore’s financial and operational outlook. The company has faced repeated delays in restarting production at the Santa Ynez Unit, now pushed to the second quarter of 2025, which raises concerns about its ability to meet operational timelines. These delays are compounded by increased scrutiny from state agencies and local communities, which could further hinder progress.
Additionally, Sable Offshore’s financial position is strained with significant debt obligations amounting to $833.5 million, against a cash reserve of $300.4 million. This imbalance in financials, coupled with the ongoing operational challenges, suggests a diminished equity value, prompting Khorsand to recommend a Sell rating for the stock.