Evercore ISI Downgrades Oceaneering Intl (OII) to Hold

Evercore ISI downgraded Oceaneering Intl (NYSE: OII) from Buy to Hold with a price target of $28.00 (from $36.00).

Analyst James West commented, "Oceaneering i s a pioneer i n underwater robotics, contracting ROVs for drill-support and vessel-based services. Utilization i s poised to fall with the global floating rig count, but we expect idle ROVs to offer significant operating leverage when the deepwater market recovers. Longer term the industry i s working towards lowering uncertainty in deepwater development and we believe fundamentals will improve, with OII’s diversified product lines a beneficiary a s operators develop their deepwater reserves. Subsea Products backlog offers some earnings visibility in the immediate term, though margins may trend lower and new orders remain choppy and competitive. One of the few oilfield services company to still pay an attractive dividend, we expect the cash balance to build for buy backs and potential acquisitions"

For an analyst ratings summary and ratings history on Oceaneering Intl click here. For more ratings news on Oceaneering Intl click here.

Shares of Oceaneering Intl closed at $28.62 yesterday.

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