SMHI - Tidewater: Strong Quarter And Solid Prospects But Valuation Remains A Concern

2024-06-17 01:57:57 ET

Summary

• Leading offshore support vessel and services provider Tidewater reported strong Q1/2024 quarter, with both revenues and profitability ahead of consensus estimates as utilization and dayrates exceeded internal expectations.
• Free cash flow of $43.8 million reached a new recovery high.
• Management also reiterated full-year guidance but warned of a weaker-than-expected second quarter performance which should be made up for by a materially improved second half.
• While industry conditions remain constructive, the company's valuation in combination with recent insider selling is a cause for concern.
• With shares trading close to my $95 price target, I am reiterating my "Hold" rating on TDW stock.

Note:

Tidewater Inc. ( TDW ) has been covered by me previously, so investors should view this article as an update to my earlier publications on the company. ...

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