UPDATE: Morgan Stanley Upgrades Oceaneering International to Overweight on Demand Tailwinds
Morgan Stanley upgraded Oceaneering International (NYSE: OII) from Equal-weight to Overweight and announced a $72.00 price target.
Morgan Stanley noted, "We see demand for OII's ROVs driven by (i) newbuild floating rig and vessel deliveries, (ii) increasing utilization for both. While the market remains concerned about significant newbuilding of ROVs, we estimate that there is enough demand to absorb several years of peak-level ROV building activity. As a result, we expect ROV dayrate growth to surpass cost inflation, allowing EBITDA/day to grow in the mid- to high single digits, still meaningfully below the prior cycle."
Oceaneering International closed at $56.25 on Monday.
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