Global Hunter Securities Upgrades Gulfmark Offshore (GLF) to Buy

Global Hunter Securities upgraded Gulfmark Offshore (NYSE: GLF) from Neutral to Buy with a price target of $49.00.

Analyst Mark Brown said, "We rate GLF a Buy (from Neutral previously) given our belief that GLF is positioned to deliver more earnings growth than current consensus expectations through 2015."

"Although GLF only managed to show in-line operating earnings in Q1:14 (EBITDA of $41.6MM vs. $41.9MM consensus), the vessel markets appear to be building momentum across its three major operating regions over the next few years. Although market softness is expected to continue in the Gulf of Mexico in Q2:14, the scheduled ramp in the floating rig count and the company’s imminent capacity additions (four newbuild vessels, five more stretched vessels) should significantly improve its prospects there by the second half of 2014. Our price target of $49 (from $44 previously) implies 9.5x on 2015 P/E and 6.1x on 2015 EV/ EBITDA," he added.

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 $43.40 yesterday.

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