Tidewater Stock Falls After DNB Carnegie Downgrade
Tidewater, a leading provider of offshore support vessels, has seen its stock fall by 0.9% following a downgrade by DNB Carnegie. The Norwegian bank has lowered its price target and adjusted EBITDA estimates for the company, citing market softness and limited activity improvement in the stock market today.
DNB Carnegie has downgraded Tidewater's rating to 'Hold' from 'Buy', reflecting the current stock market conditions and the company's exposure to shorter-term contracts in a fragmented OSV market. Despite these challenges, Tidewater's conservative balance sheet provides a solid foundation to navigate increased uncertainty in the stock market today.
Tidewater's recent acquisition of Swire Pacific Offshore for $190 million has bolstered its position as the industry's largest fleet of offshore support vessels. This strategic move opens up possibilities for further acquisitions in the stock market today, given the company's active role in fleet expansion and market positioning within offshore support services. However, DNB analyst Kristian Filip Aarli has lowered his 2026-27 adjusted EBITDA estimate for Tidewater by 8%-9% to below consensus, indicating potential headwinds for the company's financial performance in the stock market today.
DNB Carnegie has reduced its price target for Tidewater to $53 from $69, reflecting the current stock market conditions and the company's challenges. While Tidewater has a $500 million share repurchase program, it prefers M&A over buybacks for capital allocation, suggesting a focus on strategic growth opportunities in the stock market today.
