Oilfield services company TechnipFMC became a “grand slam” for investors as its stock price hit multi-year highs and recently topped the $10 billion market cap, according to Benchmark. “In baseball terms, this is a grand slam in which the stock is viewed by momentum, value, large-cap, and income investors,” analyst Kurt Khalid told clients in a note Monday. The analyst rates the stock a buy, with a price target of $30, implying a 20% upside from Thursday’s closing price of $25.11. TechnipFMC was founded in 2017 through the merger of France’s Technip and FMC Technologies and provides technology solutions to the conventional oil and gas sector, both subsea and on land. We are also working on emerging areas such as carbon capture and storage, which are critical to the energy transition. TechnipFMC expects to book more than $30 billion in subsea orders by 2025, a 25% increase compared to the company’s previous goals. Mr. Khalid told clients that the company offers unprecedented revenue visibility, margin expansion and free cash flow generation. “This sustainable FCF growth will be a boon for income investors,” the analysts wrote. TechnipFMC also recently won his $200 million contract to develop the North Sea’s first all-electric carbon dioxide transport and storage system. The oil industry is investing in carbon capture technology as a way to reduce emissions from heavy industry, which is difficult to decarbonize. According to Benchmark, Rystad Energy estimates the total addressable market for carbon capture and storage (CCS) to be $270 billion. “CCS has been talked about in the industry as a new growth opportunity, and now it’s becoming a reality,” Khalid said. — CNBC’s Michael Bloom contributed reporting
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