Markets & Finance

Baird Downgrades Oceaneering International


Oceaneering International (OII) shares fell after it terminated an agreement to acquire Subsea 7's remotely operated vehicle drill rig operations because closing conditions weren't met, and cut its earnings outlook. Baird downgraded the stock to neutral.

Analyst George Gaspar says he downgrades from outperform as the termination of the acquisition shortcuts further near term stock price target opportunity following a 3-to-5 months price advance of 55% on other recent positive corporate developments. He says 2004 EPS will be reduced moderately to reflect acquisition transaction costs, in line with lower guidance.

Gaspar cut his $1.63 2004 EPS estimate to $1.58, and maintains $2.01 for 2005. He lowered his $37 price target to $35, or 7.8 times his unchanged 2005 EPS cash flow estimate of $4.49 per share.


Tim Cook's Reboot
LIMITED-TIME OFFER SUBSCRIBE NOW

Sponsored Financial Commentaries

Sponsored Links

Buy a link now!

 
blog comments powered by Disqus