Tidewater Stock Dips on Downgrade, Despite Strong Balance Sheet
Tidewater's (NYSE:TDW) stock dipped 0.9% on Monday, following a downgrade by DNB Carnegie. The analyst firm reduced its rating and price target due to concerns about near-term earnings and stock market conditions.
DNB Carnegie analyst Robert Schaanning downgraded Tidewater to 'Hold' from 'Buy', slashing the price target to $53. This move reflects a more cautious outlook, influenced by the analyst's view of the company's near-term earnings and the current stock market climate.
Tidewater's conservative financial position offers some reassurance amidst stock market uncertainty. However, its high exposure to short-term contracts in the fragmented offshore support vessel (OSV) market presents challenges. DNB analyst Kristian Filip Aarli also lowered his 2026-27 adjusted EBITDA estimate by 8%-9% to below consensus, indicating reduced expectations for the company's performance.
Despite the downgrade and stock decline, Tidewater maintains a strong balance sheet. The company prefers strategic mergers and acquisitions over share repurchases for capital allocation. As stock market softness persists into 2026, Tidewater's ability to navigate these conditions will be closely watched.
