PGS 'set to capitalise' on improved market, Barclays upgrades

PGS ASA

01/02/2023 11:43

** Barclays upgrades PGS  PGS.OL  to "overweight" from
"equal weight", saying the future looks "encouraging" for the
Norwegian oilfield services company as industry activity picks
up in 2023
    ** The brokerage notes the company is confident it can meet
its refinancing needs in the near team, and says PGS "looks set
to capitalise on a much improved market"
    ** Growing demand against limited supply also bodes well for
pricing, it adds
    ** Barclays says coming months will be pivotal for PGS to
overcome a wholesale refinancing "hurdle", but sees scope for
further upside if the group can "rehabilitate itself with a
wider group of investors"
    ** "We see a bright outlook for PGS in the medium term, with
the stock offering ca. 20% FCF yield in 2023F and the potential
to grow it further," says the brokerage
    ** Shares in PGS rise 9% in midday trade
 (Reporting by Greta Rosen Fondahn)
 ((Greta.RosenFondahn@thomsonreuters.com))