This exceptional energy stock could be a hit for investors , according to Benchmark

The oilfield services company, TechnipFMC, has turned out to be a profitable venture for investors as its stock reached multi-year highs and recently surpassed a market value of $10 billion, as stated by Benchmark.

Using a baseball analogy, the company’s stock has hit a grand slam, attracting the attention of momentum, value, large cap, and income investors,” says analyst Kurt Hallead in his note to clients on Monday. The analyst is bullish on the stock, setting a $30 price target, which suggests a 20% upside from its closing price of $25.11 on Thursday.

Established in 2017 with the merger of Technip of France and FMC Technologies, TechnipFMC provides technological solutions for the conventional oil and gas industry, both offshore and onshore. The company is also making strides in emerging sectors such as carbon capture and storage, vital for energy transition.

TechnipFMC envisions securing over $30 billion in underwater orders by 2025, a 25% increase from the company’s previous target. Hallead points out that the company presents remarkable revenue predictability, margin growth and sustainable free cash flow generation to his clients.

“Hence the consistent FCF growth is set to greatly benefit income investors,” penned the analyst.

Furthermore, TechnipFMC was recently granted a $200 million contract to construct the first ever fully-electric carbon dioxide transportation and storage system in the North Sea. The oil industry is investing in carbon capture technology with the aim to reduce emissions from heavy industries that are challenging to make carbon-neutral. Benchmark said that Rystad Energy estimates the total market potential for carbon capture and storage (CCS) to be at $270 billion.

Hallead emphasized, “Carbon capture and storage has been a topic of conversation for some time in the industry but now the potential is truly being realized.”

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This exceptional energy stock could be a hit for investors , according to Benchmark

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