|No. of shares out||685m|
|Trading volume (90 day avg.)||5.2m|
|Cash per share||0.21 USD|
Berenberg predicts a re-rating at Wood Group
Oil services company Wood Group (WG) is ‘uniquely placed’ for the shift into renewable energy and a re-rating, says Berenberg.
Analyst Henry Tarr reiterated his ‘buy’ recommendation but reduced the target price from 300p to 290p. The shares were trading at 224.4p yesterday.
‘Among European oil services companies, John Wood is uniquely placed to pivot towards the energy transition, in our view, being asset-light and able to apply its engineering and consulting expertise across virtually all emerging renewable technologies,’ he said.
He said there were some legacy challenges that ‘remain a huge drag on cashfow’ and clearing these up over the next two years was ‘critical to the investment case’.
‘We believe that investor fears about the balance sheet are overdone, and, if execution is solid, see a path to a re-rating for the stock,’ said Tarr.