Jefferies downgrades Fugro to 'hold' as 'market growth outlook has halved'

Fugro NV

06/08/2025 07:51

** Jefferies downgrades Dutch geo-data specialist Fugro FUR.AS to "hold" from "buy", citing a halved market growth outlook and increased execution risk

** The broker notes the expected Compound Annual Growth Rate for offshore wind capital expenditure has slowed to 14% for FY2024-2028 from a previous 30%

** To protect profitability, Fugro is targeting cost savings of 80-100 million euros  ($115.84 million), which includes a headcount reduction of approximately 750 employees, or 7% of its workforce

** "Expected growth in Fugro's end markets has more than halved," Jefferies says, driven by the offshore wind slowdown and more cautious oil and gas investment

** Jefferies cuts its price target by 24.2% to 12.50 euros, valuing the company on a 10.0x FY2025 Enterprise Value to Earnings Before Interest and Taxes (EV/EBIT) multiple

** Out of 8 analysts that cover Fugro NV, four rate the stock "strong buy" or "buy," ​three rate "hold" and one rates the stock "sell" - LSEG data

($1 = 0.8633 euros)

 (Reporting by Anna Peverieri)

 ((Anna.peverieri@thomsonreuters.com))