Tidewater (Buy, TP: USD65.00) - Guidance to be in focus
With the Q4 results, we expect focus to be on the 2025 guidance given the more challenging market backdrop of flattish E&P spending and softness in rig demand. Still, we believe already secured contracts in a strong market should provide momentum into H1 and enable YOY growth. We are in line with consensus on 2025e EBITDA but 17% below on 2026e. Cash conversion is likely be aided by lower maintenance capex, and we forecast FCF yields of 15–18% for 2025–2026. We reiterate our BUY but have reduced our target price to USD65 (70).
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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