(Sharecast News) - Analysts at Canaccord Genuity raised their target price on oilfield services firm James Fisher from 1,200.0p to 1,375.0p on Friday following the group's full-year results a day earlier.
Canaccord highlighted that James Fisher's full-year results had come in at the top end of previous guidance, with earnings per share of 47.8p, down 39% year-on-year on known Covid-related problems and specific challenges in project-related work for the offshore marine markets, a writedown of various assets clearing the decks for its upcoming strategic review and a strong cash performance that resulted in year-end net debt of £198.0m.
Looking forward, the Canadian bank said Fisher's outlook for 2021 was for "a significant earnings recovery", with a reduction in Covid-19 effects and strong positive signs across multiple markets.
Canaccord, which reiterated its 'buy' rating on the stock, said it was now taking "a slightly more cautious view on earnings", moving broadly in line with consensus and reducing its forecasts by roughly 9% for the next three years.
However, at the same time, the analysts said they were "increasingly confident" in a resumption of Fisher's traditional valuation premium with "a more strategically focussed portfolio".
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