TD Cowen Analyst Raises TechnipFMC Price Target by 6.7% on Strong Q1 Earnings

TD Cowen's Marc Bianchi raised their price target on Technipfmc (NYSE: FTI) by 6.7% from $30 to $32 on 2024/04/26. The analyst maintained their Strong Buy rating on the stock.

Bianchi's price target increase comes after TechnipFMC reported "solid" earnings for the first quarter of 2024, which exceeded management's guidance for the second quarter. The analyst believes that the positive revisions to the stock price will continue as a result of the strong Q1 performance.

For Q1 2024, TechnipFMC reported earnings per share (EPS) of $0.22, beating the Zacks Consensus Estimate of $0.16 and surpassing Q1 2023's EPS of $0. The company also reported revenue of $2.04 billion, which exceeded the Zacks Consensus Estimate of $1.97 billion and represented an 18.6% increase compared to Q1 2023's revenue of $1.72 billion.

In terms of guidance for the full year 2024, TechnipFMC reiterated its expectations. The company expects subsea revenue to range from $7.2 billion to $7.6 billion, while Surface Technologies revenue is projected to be between $1.2 billion and $1.35 billion. TechnipFMC also anticipates a Subsea adjusted EBITDA margin of 15.5% to 16.5% and Surface Technologies adjusted EBITDA of 13% to 15%. The company aims to achieve free cash flow of $350 million to $500 million and plans to invest $275 million in capital expenditures.

CEO Doug Pferdehirt commented on the company's Q1 performance, highlighting the announcement of integrated awards for three iEPCI™ projects that provide solutions to industry challenges. Pferdehirt emphasized TechnipFMC's differentiated technology portfolio and its ability to create new market opportunities.

The positive analyst rating from TD Cowen's Marc Bianchi is in line with the consensus among analysts. Currently, 100% of top-rated analysts rate TechnipFMC as a Strong Buy or Buy, with no analysts recommending a Hold or a Sell. The consensus forecast for the company's upcoming year projects earnings per share (EPS) of $0.68, representing a 38.4% year-over-year increase.

TechnipFMC's stock has performed exceptionally well, with a year-over-year increase of 107.6%. This growth has outpaced the broader market, as the S&P 500 has experienced a 25.7% increase during the same period.

Marc Bianchi, the analyst who raised the price target on TechnipFMC, is ranked in the top 19% of Wall Street analysts by WallStreetZen. With an average return of 10.1% and a win rate of 54.1%, Bianchi specializes in the Industrials, Energy, and Basic Materials sectors.

TechnipFMC plc operates in the energy industry, providing project life cycle services. The company is divided into three segments: subsea, offshore/onshore, and surface projects. Its offerings include offshore oil and gas exploration and extraction platforms, rigs, crude oil refineries, petrochemical plants, fertilizer plants, and LNG plants. TechnipFMC was formed in 2017 through the merger of FMC Technologies and Technip, with headquarters in Houston, TX.

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