Oceaneering International "buy," target price raised

06/22/06 - Capital One Southcoast

NEW YORK, June 22 (newratings.com) - Analysts at Capial One Southcoast reiterate their "buy" rating on Oceaneering International Inc (OII), while raising their estimates for the company. The target price has been raised from $43 to $46.

In a research note published this morning, the analysts mention that the demand for the services provided by the company's ROV and Subsea Projects segments is expected to be robust in the near term. An increase in ROV units is expected to drive profits at Oceaneering International's ROV segment going forward, the analysts say. The company has raised its EPS guidance for FY06 from $1.45-$1.55 to $1.80-$1.95. The EPS estimates for FY06 and FY07 have been raised from $2.05 to $2.10 and from $2.35 to $2.55, respectively, to reflect an increase in profit contributions from the ROV, Subsea Projects and Subsea Products segments.