In a report released yesterday, David Deckelbaum from TD Cowen maintained a Buy rating on Sable Offshore (SOC – Research Report), with a price target of $20.00.
David Deckelbaum has given his Buy rating due to a combination of factors surrounding Sable Offshore’s operational and financial outlook. The company is on track for a September restart, with production guidance for the fourth quarter suggesting a swift return to historical output levels. The preparation for this restart is well underway, with significant staffing increases and preliminary legal approvals in place. Furthermore, Sable has revised its contingent resource estimate upwards, indicating a more substantial underlying asset base than previously accounted for, which provides a stronger foundation for future growth and profitability.
Deckelbaum’s optimism is further reinforced by Sable Offshore’s solid financial position, with a cash reserve that is deemed sufficient to cover the costs of necessary pipeline repairs and the recommencement of operations. The sizable increase in the company’s net contingent resources, particularly in developmental drilling, and a higher proportion of oil in the mix, align with favorable market pricing linked to Brent crude. This positive revision in resource estimates and the company’s operational readiness present a compelling case for a Buy rating, as they suggest that Sable Offshore is well-positioned to capitalize on its assets and deliver value to its shareholders.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Sable Offshore (SOC) Company Description:
Flame Acquisition Corp is a blank check company.
Read More on SOC:
