Zacks Investment Research Downgrades Subsea 7 (OTCMKTS:SUBCY) to Sell

Subsea 7 (OTCMKTS:SUBCY) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Thursday, reports.

According to Zacks, “Subsea 7 S.A., formerly known as Acergy S.A., operates as an engineering, construction and services contractor to the offshore energy industry worldwide. The Company is engaged in the design, fabrication, installation and commissioning of seabed-to-surface projects and its scope of operations include Subsea, Umbilical, Riser and Flowline (SURF) systems; Life-of-Field; Conventional Services and Renewables. Services offered by the Company ranges from engineering and construction for subsea field developments, pipeline and riser systems and associated services, inspection, maintenance and repair, integrity management and remote intervention, fabrication and installation of fixed platforms and associated pipelines, as well as hook-up and platform refurbishment. Subsea 7 S.A. is based in London, United Kingdom. “

Several other research firms have also recently issued reports on SUBCY. Morgan Stanley reiterated an “equal weight” rating on shares of Subsea 7 in a research note on Thursday, November 11th. JPMorgan Chase & Co. cut shares of Subsea 7 from an “overweight” rating to a “neutral” rating in a research note on Friday, December 10th. Finally, Berenberg Bank reiterated a “buy” rating on shares of Subsea 7 in a research note on Wednesday, November 24th. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating and six have given a buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Buy” and a consensus price target of $67.00.

SUBCY opened at $8.31 on Thursday. The company has a 50 day moving average of $7.56 and a 200 day moving average of $8.13. The company has a market cap of $2.47 billion, a PE ratio of -36.13 and a beta of 1.95. Subsea 7 has a 12 month low of $6.69 and a 12 month high of $11.49. The company has a current ratio of 1.17, a quick ratio of 1.15 and a debt-to-equity ratio of 0.03.

Subsea 7 (OTCMKTS:SUBCY) last released its quarterly earnings data on Wednesday, November 17th. The energy company reported $0.15 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.12 by $0.03. The company had revenue of $1.45 billion during the quarter, compared to the consensus estimate of $1.36 billion. Subsea 7 had a negative net margin of 1.46% and a negative return on equity of 0.96%. Research analysts forecast that Subsea 7 will post 0.17 earnings per share for the current fiscal year.

About Subsea 7

Subsea 7 SA engages in the provision of engineering and construction services to the offshore drilling industry. It provides cost-effective technical solutions to enable the delivery of complex projects in all water depths and challenging environments. The company was founded on March 10, 1993 and is headquartered in London, the United Kingdom.

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