BofA restarts Italy's Saipem at 'buy' on strong growth potential

Subsea 7

03/12/2025 13:03

** BofA reinstates coverage of Italy's Saipem SPMI.MI at "buy" as it sees "strong" growth potential into 2026 and beyond despite lower oil prices

** The energy contractor's "record" contract backlog and pipeline of offshore bidding opportunities offers a "high degree of visibility", it says

** Upside potential is at around 50% with a 3.4 euros  ($3.97) PT, with margins expanding into 2030, it adds

**  Estimates Saipem's 2026 EBITDA up 20% Y/Y, 2026 revenue up 5% Y/Y

** 2030 EBITDA margin to grow to 14% from 9% in 2024, BofA notes

** The proposed merger with Norway's Subsea7 SUBC.OL, completion targeted by H2 2026, could add a further 2%-3% via Subsea7's EBITDA margin profiles, BofA adds

** Up to the previous session's close, shares were down 8.7%​ YTD

** Out of 18 analysts that cover Saipem, 14 rate the stock "strong buy" or "buy,"​ four rate "hold" - LSEG

($1 = 0.8572 euros)

 (Reporting by Philippe Leroy Beaulieu in Gdansk)

 ((Philippe.leroybeaulieu@thomsonreuters.com))