Tidewater (NYSE:TDW) might not be well-known outside of the energy stock sector, but it’s quite well-known therein. And with Evercore returning to cover the stock—and quite positively—that was enough to send Tidewater blasting up; Tidewater closed 7.82% higher in Friday’s trading.
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The word from Evercore was nothing but solid. Not only did Evercore attach an “outperform” to Tidewater stock, but it also put in a $90 price target, which is a substantial premium over its closing share price of $58.61. What prompted all these raves? Simple: Evercore noted that Tidewater is in an excellent position to take advantage of the market for offshore oil and gas development, as its primary stock in trade is equipment in oil and gas extraction. Tidewater recently picked up 37 offshore support vessels, and that was enough to make it the world leader in offshore support vessel fleet sizes.
Thanks to the acquisition, Tidewater can also count 14 vessels with battery hybrid drives and two liquid natural gas-capable (LNG) vessels to its credit. It also helps that Tidewater has a healthy proportion of institutional investors on its side, though that could make some impact on day-to-day price movements. Insiders are also starting to buy in again, though not in great numbers. Still, with oil demand still fairly high and supply starting to dwindle to the point where even OPEC is recruiting, a stock dependent on oil extraction should benefit accordingly.
A look at the last five days in trading for Tidewater shows that Tidewater stock was on a bit of a decline before the upgrade from Evercore hit. More excitingly, though, Tidewater spent most of Friday’s trading day building on that burst of good news instead of losing ground after the initial spike.
