Update shared on10 Sep 2025
Fair value Increased 5.92%Upward revisions to Oceaneering International’s price target reflect stronger-than-expected Q2 results, resilient offshore drilling markets, robust demand trends, and improved earnings visibility, resulting in a new consensus fair value of $22.38.
Analyst Commentary
- Upward price target revisions reflect updated models following stronger-than-expected Q2 results in the oil and gas equipment and services sector.
- Offshore drilling markets are proving resilient and continue to outperform broader expectations, supporting higher valuation assumptions.
- Bullish analysts note robust demand trends in Oceaneering’s primary end markets, particularly in offshore services.
- Positive outlooks are influenced by the company's demonstrated operational execution and stable project pipeline.
- Upward revisions factor in improved industry fundamentals and sustained market strength, which are driving earnings visibility.
What's in the News
- Awarded an IDIQ contract by NAVSUP WSS valued up to $86 million for repair of submarine components, with a two-year base term and options for three additional years.
- Completed repurchase of 3,776,340 shares (3.78%) for $140.66 million under its existing buyback program.
- Issued consolidated earnings guidance indicating revenue is expected to increase for Q3 2025 and to grow mid-single digits for the full year.
- Added to multiple Russell Value indices, including the Russell 2000, 2500, 3000, and Small Cap Comp Value benchmarks.
- Secured a $33 million contract to manufacture support equipment for Virginia Class submarines and entered into a vessel services agreement for subsea IMR work in the Gulf of Mexico.
Valuation Changes
Summary of Valuation Changes for Oceaneering International
- The Consensus Analyst Price Target has risen from $21.12 to $22.38.
- The Consensus Revenue Growth forecasts for Oceaneering International has significantly risen from 3.8% per annum to 4.2% per annum.
- The Future P/E for Oceaneering International has risen from 13.92x to 14.78x.
Disclaimer
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