Saipem S.p.A. offers construction and offshore and onshore drilling services. The Company installs sub-sea pipelines, installs fixed platforms, manages complete onshore construction projects, and drills for oil mainly in Italy, Algeria, Nigeria, and the Arabian Peninsula.

Today analysts from Morgan Stanley have raised the target price to EUR 57 vs EUR 50, leading to be very confident on offshore growth. Saipem has reported for the first six months of the year a revenue growth, with a rate over than 6%. The same trend has been followed by earnings per share (+8%).

Since July, the share is trading in neutral range between EUR 36.8 and EUR 39. The share has difficulties to break out the historic high of EUR 39.65. In weekly data moving averages are moving around key level, which could give power to break out the upper band of range. In this case we suggest a long position on the stock in order to aim new highs in the area of EUR 44, average consensus.