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It’s on the road to recovery and hold for me !
Reacting to the group’s financials, Alex Smith, an analyst with Investec, said: “The Petrofac recovery story remains slightly delayed, following on from previous years’ project disruptions, delays and cost overruns, with the impact expected through 2023. However, despite H1 being free cash flow (FCF) negative, the company continues to target being broadly FCF neutral in FY23, with a reduction in working capital H2 weighted and a reduction in net debt expected.
“Importantly, the company is making huge strides in award momentum, with the mammoth TenneT order and major wins in Algeria and the UAE potentially suggesting a quicker recovery. A robust group pipeline provides opportunities for growth, with a healthy pipeline of $60bn scheduled for award by end 2024.”
https://stocks.apple.com/A2jGJPbGyR6C8UKLnBAxxUQ
Results not too bad in line with guidance they provided , cash neutral from second half with Increased backlog ; I will hold ! Dyor
The Group's backlog(6) increased substantially to US$6.6 billion at 30 June 2023 (31 December 2022: US$3.4 billio
That news itself is enough for me to invest into PFc ; it’s massive with potential similar projects from other states ! Middle is simply bonus ; I think it’s seriously undervalued
Dyor
https://www.proactiveinvestors.co.uk/companies/news/1010690/petrofac-shares-soar-60-after-13bn-offshore-wind-framework-deal-1010690.html
When a sell other side is buying , so does it really make any difference? Something day traders looks at it … we look at fundamentals, future prospects, revenue and cash generation, profitability, not daily buy and sell , few penny ups n down ! In my view waste of time ! Be a n investor not a day trader , can sleep peacefully and make long term gain , how Warren Buffet made
Dyor
They released all bad news , now is the time to see some positive update which will re-rate the sp ; more like Adnoc $700m contract needed . Following sfo conclusion it went to £1.90, what has materially changed since then , oil price stable at $80, more contracts win , only negative is cash flow issue , debts increased
I’m optimistic here , let’s see , it’s s hold !
Dyor
My post on Rr not long ego ; when it was 105p, target was 130p , next was £1.80, a few thought unrealistic and came up with comments like “ I will pay off xyz “ ! I am still here , wonder how many became millionaire at this price or they were simply bluffing?
Anyway fact is ; I was optimistic when it was 60p, now it’s 350% up and I’m still optimistic! Dyor
SS17
Posted in: RR.
Posts: 899
Price: 105.18
No Opinion
RE: DB target price 136;1 Feb 2023 20:12
A few Penny dropped all experts started negative comments; these are day trader , let it settle will start motoring again next stop £1.30+…. I wonder where do they go when SP rise ? Don’t forget it’s moved from 66p £1.10 in 3 months( that’s 40% rise) ! As I said before I will keep this headline going until it hit that price
Dyor
Key facts in the last week update , which market and
Analysts are still digesting ;
-Sales £6,950m, +28% yoy
-Operating profit £673m, +382% yoy
- FCF £356m, materially above £-68m in H1 22
- FY23 guidance upgraded: £1.2bn-£1.4bn operating profit and £0.9-1.0bn FCF
With all of these updated number, SP should be be re-rated , still cheap given the growth prospects when including SMR, electric aircraft, taxi … British engineer with the world’s leading technology in the aerospace industry!
Another re-rate , agree with their price target , £3.10 is achievable in next few weeks. Today’s Jpm upgrade removed all doubts, all positive ! A great recovery stock , life time opportunity, therefore won’t be selling so soon. Those who are here for last 2 years, can see my post have been keep saying, it’s next Tesla in the aerospace industry . Looks like it’s going towards that
Dyor
I see it’s positive, business doing well so reward the employees who are running the business and doing all the hard work! It will remove staffing issues , low turnover which will save cost ( less training , business disruption less HR cost etc )company can focus on providing quality service to its passengers, generate decent profits, employees play a key role to any successful business! So I welcome this as investors of IAg ! My target price remained the same , £3.50 long term , £2.50 within next 6 months. Out of my two favourite, Rr already started motoring , I’m sure IAg will follow soon as travel industry booming and got back to pre Covid level
Dyor
Dyor
Been in the side line since so dropped significantly, and stopped trading, started looking again as it seems worst is over and recently sp picked up , however, still some uncertainty and potential another round of fund raising based on below in the June report; I welcome comments from anyone with who has done some more research?
“Notwithstanding the recent loan funding and planned equity refinancing of the loan, the Group expects that additional funding will be required from around September 2023 onwards for trading, working capital, capital expenditure and continuing R&D programmes. Discussions have commenced with certain shareholders on providing additional funding; these discussions are at an early stage with no binding arrangements but have been positive.
Ahh JPM target price 90p! Shorters burning !! Rr in different league now , re rate coming , market sentiment changed , very bullish here ! Let all weak investors out, institutional investors in , we should see where it goes ! I’m holding
Dyor
It’s going towards £2+ as I said earlier in the morning when Rr was on red ! It was a tree shake to get rid of weak and day trader, soon should be re-rated to investment grade ! Todays update was assuring and very positive, RR back on black and back to business, well done Tufan , burning platform strategy working well so far , let see where it goes in next few months
Dyor
Agree we don’t know the future ,my target price is on the assumption that, no fundamental change in the macro environment ( I.e. no more Covid , Russia war situation either improves or does not deteriorate further , no other war such China / US/ Taiwan/ Japan , inflation situation does not get worse etc )
I feel for those who bought pre covid level, however I invested during that period when both stocks about to collapse ! That is why I said check my post , in the last 3 years !
Every investment comes with risk, Iag and Rr not immune to that , from my optimistic risk taker perspective, both are are at the growth stage and still recovering, we should expect better returns! Comparing to US market these are cheap stocks at this price ! I had invested in Tesla ( gone from $110 to $270 from last December, same for google, Amazon ) , it’s all about market sentiments, once this improves, institutional investors starts buying UK ftse 100 stocks , below £2 will be in the rear mirror!
Dyor
Let’s wait and see …. Patience is required here ! For records, You can see my post when Iag was £1, now nearly 60% up, you can also see my post on RR was 60p now £1.93! Many at that time made pessimistic comments it going bust , if Rr can go from 60p to £1.90 and Iag from £1 to where it is now why can’t it go £3.50?
I’m still holding both ( with big profit) as I said the top two post recovery stocks !
Market does factor fundamentals and eventually reflect , only those short term and day trader can’t see that ! When I buy a share I see I’m buying a business , not for day trading , we need to let grow and then see the fruits
Dyor
Was expecting 10% rise following the trading update , not a bad start 6%+! As many have already said here , Iag is going towards a profitable, sustainable world leading airlines business! We have seen debts reduced by €3b, with over €1b profit, reached nearly 100% of the pre Covid level , Q3, and q4 already started looking good !
What else need from an investors perspective? I have loaded before the result day and will hold for long term , I see re rare coming , my target get price £3.50. Short term it may hit £2.20+
Dyor