Offshore Demand And Mergers Will Drive Utilization Momentum Next Year

The analyst price target for Tidewater has been revised downward by $1.67 to $60.00. Analysts cite moderated profit margin and revenue growth forecasts for the upcoming periods.

Analyst Commentary

Recent research updates have offered a mix of both optimistic and cautious perspectives on Tidewater's outlook. While some analysts have highlighted the company's strong quarterly performance and longer-term growth potential, others are expressing reservations regarding near-term challenges and revised valuation estimates.

Bullish Takeaways

• Bullish analysts point to a strong performance in the recent quarter, suggesting that current execution is supporting confidence in Tidewater's operational momentum.
• Upward adjustments to future price targets reflect expectations for improvement in the business, particularly as projections for 2026 indicate a positive setup for growth.
• Despite short-term uncertainty, the broader view remains constructive as management continues to position Tidewater for longer-term margin and revenue expansion.
• Maintained strong ratings by some analysts underscore enduring confidence in Tidewater's competitive position and execution capability, even as some targets are revised.

Bearish Takeaways

• Bearish analysts are turning more cautious by lowering ratings and price objectives, citing moderated outlooks for profit margins and revenue growth.
• There is concern that the anticipated weaker performance in the second half of 2025 may offset gains realized in earlier periods and could impact overall year-on-year results.
• Some view recent downward revisions to price targets as a sign that uncertainty around earnings trajectory remains a notable risk for investors.
• A selective approach is being recommended as valuation metrics begin to reflect slower near-term progress, while longer-term opportunities still exist.

What's in the News

• Tidewater Inc. is actively seeking mergers and acquisitions, with leadership emphasizing M&A as the preferred capital allocation strategy during the second quarter 2025 earnings call. (Company announcement)
• The Board of Directors has authorized a new share repurchase program as of August 4, 2025. This program allows up to $500 million in buybacks with no set expiration. (Company announcement)
• From April 1 to June 30, 2025, Tidewater repurchased 1,379,723 shares, representing 2.71% of its outstanding shares for $50.77 million. This brings total completed repurchases to 7.12% since February 2024. (Company statement)
• Tidewater has reiterated its full-year 2025 revenue guidance, expecting between $1.32 billion and $1.38 billion in revenue. (Guidance update)

Valuation Changes

• Consensus Analyst Price Target has decreased from $61.67 to $60.00, reflecting a modest downward revision.
• Discount Rate has edged down slightly from 7.92% to 7.92%. This indicates a negligible change in risk assumptions.
• Revenue Growth expectations have fallen noticeably from 3.64% to 2.70%.
• Net Profit Margin forecast has declined from 20.24% to 19.13%.
• Future P/E ratio has risen from 10.37x to 10.97x. This suggests a higher valuation relative to anticipated earnings.