Jefferies cuts Fugro, warns of weaker offshore wind outlook

** Jefferies downgrades Fugro FUR to "underperform" from "hold", saying the Dutch geo-data specialist's target for a recovery in the second half of 2025 is overly optimistic

** The broker reduces its 2025 EBIT forecast by 25%, citing Fugro's increased dependence on cost reductions and weaker growth prospects in key markets, particularly offshore wind

** Jefferies also cuts its annual revenue growth forecast to less than 10% for 2024–2028 from the 18% expected a year ago, and says that consensus estimates may be too high

** It notes that Fugro's revenue growth forecasts have been cut by more than half since early 2024

** After a 27% share price drop year-to-date, Jefferies cuts its price target of 10 euros from 12.5 euros, expecting little chance of a near-term recovery in the share price

** Out of eight analysts that cover Fugro NV, four rate it "strong buy" or "buy," ​two rate "hold" and two rate it "strong sell" or "sell" - LSEG data