FET to improve FCF as growth concerns prevail
Forum Energy Technologies (FET) serves the drilling, subsea, completions, production and infrastructure business in the energy sector. I do not expect FET to beat the industry headwinds and its stock price can remain depressed in the in the short-term. However, FET is a resilient company and is likely to withstand the pricing pressure at a $50 crude oil price. If the crude oil price recovers from here, FET’s margin will improve, and its stock price will reflect more attractive valuation multiples. Despite the completion activity