Goldman Sachs Buys In to Viridien's Exploration Recovery Play

Goldman Sachs has initiated coverage of Viridien with a Buy rating, driving shares up 3.8% on Tuesday. The bank believes the company offers a unique way to tap into a recovery in global exploration spending.

In its report, Goldman analyst Michele Della Vigna noted that Viridien has transformed from a capital-intensive acquisition model to a technology-led geoscience franchise. This shift has given the company leading positions in subsurface imaging, multi-client data, and seismic equipment.

The market underappreciates the quality of Viridien's geoscience franchise, Della Vigna argued, as well as its earnings leverage during a seismic upcycle. Goldman forecasts an 8% compound annual growth rate in cash flow from operations, excluding working capital, from 2026 to 2030.

The key driver behind the rating is subsurface imaging, which holds over 50% of the global market share and has been rising steadily since 2020. Viridien's technology moat, built on more than 300 PhDs and proprietary algorithms, protects its position in this space.