Tidewater: Decent Quarter, Strong Prospects Going Into 2023 - Buy

Nov. 07, 2022 3:22 PM ETTidewater Inc. (TDW)SMHI34 Comments
Henrik Alex profile picture
Henrik Alex


  • Tidewater reported much better-than-expected third quarter results and provided an upbeat industry outlook.
  • Average day rate and gross margins increased to new multi-year highs.
  • On the conference call, Tidewater management hinted at potential further M&A activity.
  • I am affirming my "Buy" rating on Tidewater shares with a medium-term price target of $50 based on an assumed 5x EV/EBITDA run rate at the end of FY2023.
  • After the 90%+ rally from recent lows, shares might be ripe for a breather in the short-term, but with the offshore drilling industry likely in the early innings of a multi-year growth cycle, investors should consider adding on any major pullbacks.

Offshore-Öl-Rig Supply Schiffes.

landbysea/iStock via Getty Images


Tidewater Inc. (NYSE:TDW) has been covered by me previously, so investors should view this article as an update to my earlier publications on the company.

Last week, leading offshore support services provider Tidewater reported much

Key Financial Metrics

Company Press Releases and SEC-Filings

Cash Flow Generation

Company Presentation

This article was written by

Henrik Alex profile picture
I am mostly a trader engaging in both long and short bets intraday and occasionally over the short- to medium term. My historical focus has been mostly on tech stocks but over the past couple of years I have also started broad coverage of the offshore drilling and supply industry as well as the shipping industry in general (tankers, containers, drybulk). In addition, I am having a close eye on the still nascent fuel cell industry.I am located in Germany and have worked quite some time as an auditor for PricewaterhouseCoopers before becoming a daytrader almost 20 years ago. During this time, I managed to successfully maneuver the burst of the dotcom bubble and the aftermath of the world trade center attacks as well as the subprime crisis.Despite not being a native speaker, I always try to deliver high quality research at no charge to followers and the entire Seeking Alpha community.

Disclosure: I/we have a beneficial long position in the shares of TDW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I am also long peer SMHI.

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