TechnipFMC: amongst J.P. Morgan's best picks

(CercleFinance.com) - J.
P. Morgan on Friday reiterated its "overweight" recommendation on TechnipFMC shares, making them one of its "top ideas" for 2021.

The broker - which has a price target of 13 dollars for the stock - says that it benefits from valuation leverage following the split from Technip Energies, which became effective last month.

According to J.P. Morgan, the deal should enable the oil and gas group to reduce its debt via the monetisation of its shares in its subsidiary, in addition to the "normalisation" trend expected in its results over the period 2021-2022.

For the broker, this momentum suggests that the stock could be revalued through the disappearance of the discount at which it is currently trasding relative to the rest of the sector.

J.P. Morgan also expects TechnipFMC to focus on its "Deep Purple" technology, a "green" initiative that combines wind, wave and hydrogen energy, in the coming months.



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