On Monday, Subsea 7 (OTC:SUBCY) SA (SUBC:NO) (OTC: SUBCY) saw its price target increased by a Jefferies analyst from NOK220.00 to NOK240.00, while the firm maintained a Buy rating on the stock. The revision reflects the analyst's anticipation of Subsea 7 reporting a new record backlog level in the second-quarter 2024 results.
The analyst's optimism is based on expectations set earlier in April, predicting that Subsea 7's revenue guidance would likely be revised upward at some point during the year. This forecast aligns with the company's current trajectory and the positive feedback from a recent Analyst Site Visit to Subsea 7's Viga Spool base in Norway.
The updated price target represents a 9% increase from the previous target, signaling confidence in Subsea 7's performance and growth potential. The analyst's commentary after the site visit reinforced this outlook, highlighting the company's strong position within the industry.
Investors and market watchers are now looking forward to Subsea 7's upcoming second-quarter 2024 results, where the company is expected to showcase its progress and potentially adjust its revenue guidance as anticipated by the Jefferies analyst.
InvestingPro Insights
The recent upgrade in Subsea 7's price target by a Jefferies analyst aligns with the data that suggests a solid performance trajectory for the company. According to InvestingPro data, Subsea 7 is trading with a market capitalization of approximately $5.69 billion and has shown a robust revenue growth of 18.01% over the last twelve months as of Q1 2024. This growth is further supported by a strong quarterly revenue increase of 11.96% in Q1 2024, indicating a positive trend that may continue to buoy investor sentiment.
InvestingPro Tips also highlight that Subsea 7 is expected to grow its net income this year, which could be a contributing factor to the analyst's optimistic outlook. Furthermore, the company has demonstrated a high return over the last year, with a 53.51% price total return, and a strong return over the last three months, at 20.68%. These figures suggest that Subsea 7 is capturing the attention of investors and may continue to do so with its upcoming second-quarter 2024 results.
For investors seeking a deeper analysis and additional InvestingPro Tips, there are currently 14 more tips available on InvestingPro that provide further insight into Subsea 7's financial health and market performance. To enhance your investment strategy with these insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.