Wells Fargo Starts Gulfmark Offshore (GLF) at Market Perform

Wells Fargo initiates coverage on Gulfmark Offshore (NYSE: GLF) with a Market Perform and $36.00 to $38.00 valuation range.

The firm comments, "We believe demand for offshore supply vessels (OSV) will continue to grow and disproportionately favor larger, more-sophisticated vessels, benefitting owners of younger, higher-specification fleets like GulfMark. We believe GLF’s modern and improving fleet (average age of 9 years versus industry's 15) is well positioned in growth markets such as the U.S. Gulf of Mexico (GOM) and Brazil, but dayrates in GLF's key North Sea market have been disappointing in 2012, tempering our near-term enthusiasm for the shares. GLF has a clean balance sheet (25% debt/cap) and a conservative growth model, and we estimate vessel additions (11 newbuilds under construction), upgrades, greater fleet utilization, and higher dayrates will drive the company’s EPS higher to $3.72 in 2013E and $4.46 in 2014E from $1.69 in 2012E."

For an analyst ratings summary and ratings history on Gulfmark Offshore click here. For more ratings news on Gulfmark Offshore click here.

Shares of Gulfmark Offshore closed at $35.47 yesterday.

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