Tidewater Is Trading At 75% Of Tangible Book Value But Watch Angola And Industry Oversupply
- Tidewater is trading at deep discounts using several valuation methods.
- However, despite negative offshore drilling services sentiment, the future industry outlook is very uncertain and the situation could get much worse before Tidewater stock bottoms.
- Tidewater also has company-specific risks such as high share of revenues from the troubled Angola and other politically and economically unstable regions, such as Venezuela and Brazil.
- Therefore, investors should start buying carefully with a plan to spread out the purchases in time.
- Over several years, the stock offers at least a 27% upside plus 2.5% dividends to patient investors with a current DFCF target price of $49.50 per share.