Technip Energies: Oddo BHF still a buyer
(CercleFinance.com) - Oddo BHF confirms its "outperform" rating on Technip Energies shares, with an unchanged target price of E27.
Yesterday, the share fell by 13.75% following the publication of an investigation by Le Monde entitled "How France's Technip Energies assisted a Russian gas megaproject despite international sanctions".
Oddo BHF believes that Technip Energies has never hidden this contract or its desire for a controlled exit. The analyst says that the commitment has been respected and the group confirmed its exit from the ALNG2 project on 27 July 2023 when it published its interim results, the analyst says.
The broker believes that the main financial risk lies in a potential fine for non-compliance with the sanctions, a fine that Oddo BHF potentially expects between E50m and E100m, deemed "easily affordable for the group".
However, the analyst also points to another risk - a commercial one - in the US market, where Technip Energies could be penalised in upcoming tenders in the region.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Yesterday, the share fell by 13.75% following the publication of an investigation by Le Monde entitled "How France's Technip Energies assisted a Russian gas megaproject despite international sanctions".
Oddo BHF believes that Technip Energies has never hidden this contract or its desire for a controlled exit. The analyst says that the commitment has been respected and the group confirmed its exit from the ALNG2 project on 27 July 2023 when it published its interim results, the analyst says.
The broker believes that the main financial risk lies in a potential fine for non-compliance with the sanctions, a fine that Oddo BHF potentially expects between E50m and E100m, deemed "easily affordable for the group".
However, the analyst also points to another risk - a commercial one - in the US market, where Technip Energies could be penalised in upcoming tenders in the region.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.