On Monday, Barclays downgraded its recommendation on Technip Energies from 'Overweight' to 'Underweight', with the target price maintained at 26.5 euros.

In a research note, the financial intermediary acknowledges that the group specializing in engineering and technologies for the energy industry remains well positioned for medium-term growth in the sector.

But in a booming onshore construction market, Barclays explains that it now sees more potential in comparable companies trading at significant discounts on the stock market.

In particular, the analyst points out that stocks such as Maire and Tecnicas Reunidas are trading respectively 40% and 60% below Technip Energies in terms of Enterprise Value/Ebitda by 2024.

And while Technip Energies benefits from attractive prospects and an attractive business model, the advancing cycle could, in his view, begin to put the spotlight on other specialists in the sector.

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