Analysts have increased their fair value estimate for Subsea 7 from NOK 223.06 to NOK 229.88. This change reflects improved revenue growth forecasts and recent price target updates by several firms.
Analyst Commentary
Recent research coverage of Subsea 7 has highlighted both supportive and cautionary perspectives on the company's outlook. Analysts continue to reassess their price targets and expectations in light of shifting market conditions and updated growth forecasts.
Bullish Takeaways- Bullish analysts have raised their price targets, supported by sustained revenue growth and confidence in Subsea 7's ability to execute on its project backlog.
- The company's positioning within European oilfield services is seen as favorable, particularly given investor preference for firms with self-help levers and superior growth prospects.
- Consistent Buy ratings and upward price target revisions reflect optimism around continued operational improvement and the potential for margin expansion.
- Subsea 7 remains a preferred name among those prioritizing exposure to the oilfield services sector instead of exploration and production.
- Bearish analysts have downgraded their ratings on valuation concerns, noting Subsea 7 shares are trading near record highs. This could limit further upside.
- Cautious sentiment persists due to uncertainties in the broader macroeconomic environment, which could impact future project awards and execution risk.
- There are concerns that while headline numbers remain strong, the sector’s cyclical nature and external risks may hinder continued outperformance.
- Some have adjusted price targets only modestly upward, signaling more measured expectations for near-term growth compared to previous optimism.
What's in the News
- Subsea 7 approved a special dividend of NOK 4.15 per share. The dividend will be distributed following a business divestment and in connection with the proposed merger with Saipem. (Extraordinary general meeting, Sep 25, 2025)
- Subsea 7 secured a major contract with Aramco for engineering, procurement, construction, and installation of over 100 km of pipelines and offshore facilities in Saudi Arabia. Offshore work is scheduled for 2027 and 2028. (Client announcement)
- Seaway7, part of the Subsea 7 Group, won a substantial contract from Synera Renewable Energy for the transport and installation of inter-array cables at the Formosa 4 Wind Farm off Taiwan. The contract also includes preferred contractor status for the Formosa 6 project. (Client announcement)
- Subsea 7 was awarded a major contract by Turkish Petroleum Offshore Technology Center for the phase 3 development of the Sakarya field in the Black Sea. This includes engineering and installation of subsea systems. (Client announcement)
- Subsea 7 maintained its revenue guidance for 2025, with expectations between $6.8 billion and $7.2 billion. (Corporate guidance)
Valuation Changes
- Fair Value Estimate has risen slightly from NOK 223.06 to NOK 229.88, reflecting updated assessment of Subsea 7's prospects.
- Discount Rate has declined marginally from 6.99% to 6.97%, indicating a modest reduction in perceived risk or cost of capital.
- Revenue Growth forecast has increased notably from 1.97% to 3.27% in updated models.
- Net Profit Margin is projected to decrease modestly from 6.76% to 6.48% in future estimates.
- Future P/E Ratio has risen slightly from 15.83x to 16.24x, which suggests expectations of higher relative valuation multiples.
Disclaimer
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