Capital One Southcoast Reiterates an 'Add' on Global Industries (GLBL); Adjusts Estimates & PT

November 6, 2009 10:00 AM EST

Capital One Southcoast reiterates an Add rating on Global Industries (Nasdaq: GLBL), raises price target from $10 to $12.

Capital One analyst says, "Action: '10/'11 to $0.66/$0.78 from $0.79/$0.84 as we lower our revenue expectations given the lighter bookings environment. Our take: Revenue hung in better than we would have thought and there was good seasonal momentum in the GOM, yet the L America loss (w/ project delays and postponements impacting cost absorption and margins), lower backlog, and continued muted outlook through 1H10 net to a negative qtr, as exp. A cautious outlook ramping down seasonally in the US GOM and ongoing customer capital restraint were the themes from GLBL's offshore construction peer group so far this earnings season, and the release echoed this sentiment w/ commentary that difficult conditions are expected to extend through the next several qtrs w/ larger bookings in the M East and L America looking more 2H10 weighted. We were cautious ahead of the qtr as nearly everyone was, and we feel much of this lower flow-through was already baked in given how the stock acted ahead of the release (-24% QTD prior to today's trading). We'd peg fair value ~$9 - $10, making the add'l post-release sell-off a reasonable buying opportunity again even though the next three qtrs look like a tough grind w/ lower revenue flow through."

To see more analyst ratings on GLBL Click Here.

Global Industries, Ltd., together with its subsidiaries, provides construction and subsea services to the offshore oil and gas industry. Its services include pipeline construction, platform installation and removal, project management, construction support, diving services, diverless intervention, and marine support services. As

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