Analyst James Schumm from TD Cowen maintained a Buy rating on Helix Energy and increased the price target to $12.00 from $11.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
James Schumm’s rating is based on a combination of factors that highlight Helix Energy’s potential for growth and value. Despite current low crude oil prices and limited investor interest, Helix Energy’s stock is seen as undervalued, trading at a favorable risk/reward ratio. The company is trading below 4x its estimated 2026 EV/EBITDA, which suggests that the market is not fully appreciating its potential for higher earnings. Additionally, Helix Energy boasts a strong free cash flow yield of 13-15% and maintains a net cash position, indicating financial stability.
Helix Energy’s recent performance further supports the Buy rating, with a significant third-quarter earnings beat and an upward revision of its 2025 guidance. The company’s Subsea Robotics and Shallow Water segments were key drivers of this earnings outperformance. While the immediate market reaction to the earnings report may have been mixed, the long-term outlook appears promising. Helix Energy anticipates benefiting from an up-cycle in the market, with improvements expected in the UK North Sea well intervention market and the potential for increased activity in regions like West Africa or Guyana. Overall, the combination of undervaluation, strong financial metrics, and positive future prospects underpin Schumm’s Buy rating for Helix Energy.
In another report released on October 21, TR | OpenAI – 4o also upgraded the stock to a Buy with a $7.00 price target.