Oceaneering Intl (OII) PT Raised to $24 at Citi

Citi analyst Scott Gruber raised the price target on Oceaneering Intl (NYSE: OII) to $24.00 (from $22.00) while maintaining a Neutral rating.

The analyst comments "We caught up with OII to discuss recent market trends and note the following takeaways. First, OII remains confident in achieving flattish ROV utilization yoy with continued pricing improvements, albeit likely at a slower rate than prior years. The company continues to expect the SSR business to be relatively well-insulated from the 2025 whitespace issues experienced by the offshore drillers given its exposure toward 7th-gen rigs and specific long-term contracts in Brazil. We forecast FY25 ROV utilization of 66%, below FY24 levels at 67%, as we believe the company’s large market share still puts it at some risk to industry whitespace. Second, OII is confident that it can improve Manufactured Products margins this year given better pricing in the backlog and improved efficiencies; we forecast FY25 MP EBIT margins of 10%, up ~240bps yoy."

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