Market Overview

UPDATE: RBC Capital Markets Upgrades Oceaneering International

Share:
Related OII
Earnings Scheduled For February 10, 2016
Oceaneering Announces Vessel Services Agreement, Expected To Commence In Nov 2015, Contract Provides 4-Option Periods Of 6-months Each
Oceaneering International's (OII) CEO Kevin McEvoy on Q4 2015 Results - Earnings Call Transcript (Seeking Alpha)

In a report published Wednesday, RBC Capital Markets analyst Kurt Hallead upgraded Oceaneering International (NYSE: OII) to Outperform from Sector Perform, with a $89.00 price target.

According to the report, OII is viewed as having one of the few secular growth stories in oilfield services currently with a five-year earnings growth profile that should yield a 15% CAGR. It is believed that 2014 and 2015 Street EPS estimates are now reasonable and believe the company has attractive relative upside after the pullback during the final two months of 2013.

“Subsea tree installations and the growing number of subsea completions are expected to be the main drivers of growth in OII's Subsea Products and Subsea Projects business segments,” the report noted. “The Subsea Products segment includes the highly profitable subsea tooling business, which continues to be the quarterly swing factor for segment operating margins. The company's tooling business is most profitable when sold into production or life of the field applications.”

The reported asserted the Subsea Products segment includes the highly profitable subsea tooling business, which continues to be the quarterly swing factor for segment operating margins. OII's tooling business is most profitable when sold into production or life of the field applications.

OII closed Tuesday at $76.59.

Latest Ratings for OII

DateFirmActionFromTo
Feb 2016RBC CapitalDowngradesSector PerformUnderperform
Feb 2016RBC CapitalDowngradesSector PerformUnderperform
Jan 2016Seaport GlobalDowngradesBuyAccumulate

View More Analyst Ratings for OII
View the Latest Analyst Ratings

Posted-In: Kurt Hallead RBC Capital MarketsAnalyst Color Upgrades Analyst Ratings

 

Related Articles (OII)

Get Benzinga's Newsletters