Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Morgan Stanley’s Ole Slorer upgraded the rating for Helix Energy Solutions Group Inc (NYSE: HLX) from Equal-weight to Overweight, while raising the price target from $8 to $10. He mentioned that well intervention is expected to lead the recovery offshore.
Likely Trough In 1Q16
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
“Well intervention is characterized by few suppliers and demand driven by (i) regulation around plug and abandonment (P&A) work and (ii) repairing wells to boost production, yielding a very fast payback for customers,” analyst Ole Slorer wrote.
The analyst expects this work to lead the recovery, since deferred maintenance is a necessity irrespective of what the oil prices are. On the other hand, higher oil prices are likely to “drive the incremental offshore dollar to high-return intervention work.”
Other Advantages
Although rigs remain a threat, but Helix Energy’s well intervention continues to be more competitive. In the GoM, even at current depressed dayrates of 60 percent below the peak for DP rigs, the company’s vessels are 15-25 percent more economic for customers. In the North Sea, Helix Energy’s well intervention vessels are 30-60 percent more economic.
Estimates Raised
The 2016 and 2017 EBITDA estimates have been raised from $61mm to $110mm and from $130mm to 165mm, respectively.
“Yet, [Helix Energy] shares are pricing in a much more punitive valuation vs. offshore names that are structurally worse off,” Slorer commented.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.