Sable Offshore initiated with an Outperform at TD Cowen

TD Cowen analyst David Deckelbaum initiated coverage of Sable Offshore with an Outperform rating and $20 price target. Sable offers a pure-play offshore California production story in a “highly attractive” reservoir that should deliver significant relative free cash flow yields once shut-in production is restored, the analyst tells investors in a research note. The firm says that while the primary risk remains a path to first production, the company’s upside to free cash flow “is unrivaled.”