RBC cuts Saipem, Subsea 7 to 'sector perform' ahead of merger completion

Subsea 7

01/08/2025 12:29

** RBC downgrades energy firms Italy's Saipem SPMI.MI and Norway's Subsea7 SUBC.OL 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

 (Reporting by Gaia Neiman, edited by Enrico Sciacovelli)

 ((Gaia.neiman@thomsonreuters.com))