Business
Stifel ups Saipem to 'buy' on favourable risk-reward after solid Q1 results
Stifel ups Saipem to 'buy' on favourable risk-reward after solid Q1 results
About this update from Saipem S.p.a.
** Stifel upgrades Italian energy contractor Saipem MIL:SPM to "buy" from "hold", citing a favourable risk-reward profile after solid first-quarter 2025 results, strong backlog and planned dividend** The broker highlights that end-March backlog represents 2.2 times the expected 2025 revenues, providing considerable visibility on 2025-2026 financials** "We believe that the current share price indicates a favourable risk/reward profile and attractive dividend," Stifel says** While risks remain on legacy projects like the Courseulles offshore wind project, expected to be completed at the beginning of 2027, and the Thai Oil project where EPC contractors await client feedback, the company has posted provisions for these risks, which are manageable over time, it adds** Equita notes Saipem secured a 520 euros million contract from Eni for a carbon capture and storage project in the UK, representing 4% of its estimated 2025 order intake, viewing the news positively for the stock** Out of 18 analysts that cover Saipem SpA, 15 rate the stock "strong buy" or "buy", three rate "hold" and no analysts rate the stock "strong sell" or "sell"($1 = 0.8814 euros)