Tidewater - Initiation of coverage - Benefiting from scale
Fleet acquisitions, a recovering offshore support vessel (OSV) market and a strong contracting strategy have helped Tidewater take EBITDA from USD35m in 2021 to USD564m in 2024e. Growth is set to slow in 2025 with a more muted drilling outlook, partly offset by a repricing of below-market contracts to current rates, while lower maintenance intensity in 2025e should provide a kicker for FCF growth (44% YOY). 1-year forward EV/EBITDA of 4.8x is below the 6-8x at which it traded earlier this year. We initiate coverage with a BUY and USD70 target price.
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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