Berenberg slashes target price for Petrofac on weak order intake

The bid pipeline was healthy, according to the broker, with $39.0bn of opportunities scheduled for award by end 2020, with 40.0% of that in growth markets.

But for the year-to-date, Petrofac's book-to-bill was running at just 0.55 times, leaving the firm facing weaker sales in its Engineering and Construction arm in 2020 which would have a knock-on impact on margins.

And the Serious Fraud Office's bribery investigation remained a key overhang for the shares, Berenberg said.

On the back of all of the above, Berenberg kept its recommendation for the stock at 'hold' but slashes its target from 500.0p to 420.0p.