Analysts have revised their price target for Helix Energy Solutions Group downward from $10.13 to $9.50. They cite a slightly lower projected fair value based on modest adjustments in future profitability and valuation assumptions.
What's in the News
- Helix Energy Solutions Group was awarded a multi-year contract with a major operator to provide production enhancement and well abandonment services in the U.S. Gulf of America, commencing in 2026. The agreement includes a minimum vessel utilization split over three years and involves the Q5000 or Q4000 vessel, intervention riser systems, remotely operated vehicles, and project management as part of the Subsea Services Alliance partnership. (Client Announcements)
- The company updated its revenue guidance for 2025, now expecting revenue in the range of $1.2 billion to $1.3 billion. This reflects a decrease due to a softer Gulf of America Well Intervention market. (Corporate Guidance, Lowered)
- Between April 1, 2025 and June 30, 2025, Helix repurchased 4,643,060 shares for $29.99 million, completing a total buyback of 9,094,398 shares for $71.49 million under the buyback initiative announced in early 2023. (Buyback Tranche Update)
Valuation Changes
- Fair Value per Share: Lowered from $10.13 to $9.50, reflecting a modest decrease in estimated equity value.
- Discount Rate: Decreased slightly from 8.84% to 8.76%, which indicates a marginally lower expected cost of capital.
- Revenue Growth: Remained nearly unchanged at approximately 2.94%.
- Net Profit Margin: Effectively unchanged, holding at about 7.39%.
- Future Price-to-Earnings (P/E): Reduced from 16.73x to 15.67x, which signals a lower anticipated earnings multiple.
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