SMHI - Tidewater: Strong Growth Ahead But Downgrading On Valuation
2024-03-20 07:02:30 ET
Summary
- Following two consecutive misses, leading offshore support vessel and services provider Tidewater Inc. reported improved fourth quarter results last month.
- Key metrics like average day rate, vessel operating margin and Adjusted EBITDA all reached new multi-year highs.
- The company also authorized a new $48.6 million share repurchase program.
- Based on management's projections on the conference call, revenues and Adjusted EBITDA are expected to grow substantially this year.
- However, with shares approaching my upwardly revised price target and closest competitor SEACOR Marine Holdings offering substantially higher upside, I am downgrading Tidewater's shares from "Buy" to "Hold".
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Tidewater: Strong Growth Ahead But Downgrading On Valuation