JPMorgan Chase & Co. Initiates Coverage on Sable Offshore (NYSE:SOC)

Key Points

• JPMorgan initiated coverage of Sable Offshore with an “overweight” rating and a $10 price target, implying approximately 176% upside from the reported $3.62 share price.
• Analyst sentiment is mixed: five analysts rate the stock Buy, one rates it Hold, and two rate it Sell, resulting in a consensus Hold rating and an average price target of $11.40.
• Sable Offshore reported a quarterly loss of $0.42 per share and revenue of $137.13 million, both below expectations; the company is focused on restarting its inactive Santa Ynez offshore oil and gas assets.

Analysts at JPMorgan Chase & Co. started coverage on shares of Sable Offshore (NYSE:SOC - Get Free Report) in a report issued on Friday, MarketBeat Ratings reports. The firm set an "overweight" rating and a $10.00 price target on the stock. JPMorgan Chase & Co.'s price target would indicate a potential upside of 175.94% from the stock's current price.

A number of other equities research analysts have also issued reports on the stock. Benchmark restated a "hold" rating on shares of Sable Offshore in a report on Wednesday, July 8th. Roth Capital cut their target price on shares of Sable Offshore from $11.00 to $10.00 and set a "buy" rating on the stock in a research note on Wednesday. Stifel Nicolaus assumed coverage on Sable Offshore in a research report on Thursday, September 10th. They issued a "buy" rating and a $8.00 target price for the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of Sable Offshore in a report on Tuesday, July 21st. Finally, Wall Street Zen raised Sable Offshore from a "strong sell" rating to a "sell" rating in a research report on Sunday, August 30th. Five research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Sable Offshore has a consensus rating of "Hold" and an average target price of $11.40.

Sable Offshore Trading Up 10.2%

Shares of NYSE SOC traded up $0.33 during mid-day trading on Friday, hitting $3.62. 1,193,293 shares of the company traded hands, compared to its average volume of 7,720,292. The company has a quick ratio of 0.18, a current ratio of 0.24 and a debt-to-equity ratio of 1.85. Sable Offshore has a 1 year low of $2.88 and a 1 year high of $20.74. The stock has a market capitalization of $695.34 million, a price-to-earnings ratio of -1.09 and a beta of -0.13. The business has a 50 day moving average of $4.51 and a two-hundred day moving average of $9.18.

Sable Offshore (NYSE:SOC - Get Free Report) last issued its quarterly earnings results on Monday, August 10th. The company reported ($0.42) earnings per share for the quarter, missing analysts' consensus estimates of $0.37 by ($0.79). The company had revenue of $137.13 million during the quarter, compared to analysts' expectations of $237.65 million. On average, sell-side analysts anticipate that Sable Offshore will post -2.18 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Capital International Investors increased its stake in shares of Sable Offshore by 542.6% in the fourth quarter. Capital International Investors now owns 11,592,407 shares of the company's stock worth $104,564,000 after purchasing an additional 9,788,351 shares during the period. Encompass Capital Advisors LLC boosted its stake in Sable Offshore by 60.6% during the 4th quarter. Encompass Capital Advisors LLC now owns 13,489,241 shares of the company's stock valued at $121,673,000 after purchasing an additional 5,091,925 shares during the period. Bank of America Corp DE boosted its stake in Sable Offshore by 224.7% during the 1st quarter. Bank of America Corp DE now owns 1,295,085 shares of the company's stock valued at $21,395,000 after purchasing an additional 896,258 shares during the period. Aventail Capital Group LP grew its holdings in Sable Offshore by 141.3% in the 4th quarter. Aventail Capital Group LP now owns 1,264,639 shares of the company's stock valued at $11,407,000 after buying an additional 740,621 shares during the last quarter. Finally, Bank of New York Mellon Corp acquired a new stake in Sable Offshore in the 2nd quarter valued at approximately $1,161,000. Hedge funds and other institutional investors own 26.19% of the company's stock.

About Sable Offshore

Sable Offshore Corp. is an independent energy company focused on the development and production of oil and natural gas from offshore assets in the United States. Its principal operations are centered on the Santa Ynez Unit (SYU), located in federal waters off the coast of California.

The company's Santa Ynez assets include offshore production platforms, subsea infrastructure, pipelines and the Las Flores Canyon onshore processing and storage facility. Sable is working to restore and restart production from the system, which has been inactive since a pipeline incident led to the suspension of operations in 2015.

Sable acquired the Santa Ynez assets from ExxonMobil and became a publicly traded company through a business combination with Flame Acquisition Corp.

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