** RBC downgrades energy firms Italy's Saipem MIL:SPM and Norway's Subsea7 OSL:SUBC to "sector perform" from "outperform"
** Broker sees lack of upside in near-term until the planned merger of the two companies is finalised in H2 2026
** Although RBC is optimistic regarding growth opportunities for the combined entity, the lengthy timeline to completion tempers expectations in the near term
** "We believe further upside potential from the merger is unlikely to be fully rewarded until the deal is finalised," the broker said in a note
** RBC also raises its PT for Subsea7 to NOK230 and cuts Saipem's to 2.75 euros, aligning both to the terms set in the merger deal
** Out of 17 analysts that cover Saipem, 13 rate the stock "strong buy" or "buy", and four rate it "hold"
** 13 analysts rate Subsea7 as "strong buy" or "buy", while six maintain a "hold" rating