Goldman Sachs starts Technip Energies at “buy” on LNG-led order visibility
Investing.com -- Goldman Sachs initiated coverage of Technip Energies (EPA:TE) with a “buy” rating, citing strong momentum in liquefied natural gas project activity and visibility on earnings growth tied to order intake, in a note dated Friday.
The brokerage said that the Paris-listed engineering and construction company is positioned to benefit from a renewed cycle of final investment decisions in the global LNG market.
The analysts said 2025 has already seen a strong wave of LNG project sanctions and that more than 80 million tonnes per annum of additional capacity is expected to reach final investment decision over the next three years.
Goldman Sachs said Technip Energies holds an estimated 20% share of sanctioned LNG projects and has a broad presence across projects that have not yet reached a final investment decision.
The brokerage expects LNG-driven project delivery order intake to exceed €25 billion cumulatively over the next three years, which it said would lift backlog to record levels and support revenue growth over the period.
Goldman Sachs expects revenue to rise from €7.22 billion in 2025 to €9.31 billion in 2027, while EBITDA is forecast to increase from €590.9 million to €879.8 million over the same period.
EBITDA growth is projected at 34.3% in 2026 and 10.9% in 2027, according to the note. Earnings per share are forecast to rise from €2.26 in 2025 to €3.30 in 2027.
Goldman Sachs set a 12-month price target of €40, compared with a closing price of €32.14 on Dec. 18, implying an upside of about 24.5%.
The brokerage said the shares have fallen about 20% over the past three months and now trade below levels implied by the company’s projected medium-term EBITDA growth.
Goldman Sachs said Technip Energies has a strong balance sheet position, with net cash of about €1.3 billion, which Goldman Sachs said provides flexibility for capital allocation.
The brokerage also pointed to stable execution and a growing contribution from the Technology, Products and Services segment as factors supporting margin performance.
Goldman Sachs said it expects traditional energy and LNG projects to remain the main drivers of order intake in the near and mid term, while low-carbon projects are expected to contribute more gradually.
