Citi analyst Scott Gruber upgraded TechnipFMC to Buy from Neutral with an $18 price target after taking over coverage of the name. The company’s pricing leverage is improving given a consolidating sector and success of its integrated model and standardization strategy, the analyst tells investors in a research note. The firm believes the market is underappreciating this pricing leverage and believes the company’s new projects will reflect 18%-20% EBITDA margins. In addition, TechnipFMC offers "superior" returns and free cash flow versus its history, as well as a commitment to enhance cash return, which should allow the stock to hold a normal multiple into 2025, even as the cycle matures, contends Citi.
Published first on TheFly
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