Business
JP Morgan cites Saipem as 'Top Pick' in shifting commodity market
JP Morgan cites Saipem as 'Top Pick' in shifting commodity market
About this update from Saipem S.p.a.
** JP Morgan cited Italy's Saipem MIL:SPM as a top pick among European oil explorers and resumes its coverage, while highlighting "resilient winners" in a turbulent and short-term market geopolitical context ** The broker highlights companies with high revenue visibility, geographical advantage, and in Saipem's case, a EBITDA margin recovery and pending strengthening of pricing power in wake of its Subsea 7 merger** "The sector has seen revenue-led absolute EBITDA growth, with margins recovering to varying extents. Given the upstream capex backdrop, we expect margin expansion to step in as the next primary growth driver," said a note by JPM** Another "Top Pick" the bank identified is UK's Harbour Energy LSE:HBR due to its "scale-driven cost reductions and resilient 2026 FCF (free cash flow)" ** Both Saipem and Harbour Energy are rated "Overweight" together with Technip Energies EURONEXT:TE, while Norway's Aker Solutions OSL:AKSO is rated as "Underweight" due to JPM's preference of oil field services over exploration and productionCOMPANYRATINGPT SaipemOverweightEUR 2.83Harbour Energy OverweightGBP 298Technip Energies OverweightEUR 47Aker Solutions UnderweightNOK 30