Raymond James reiterated its Outperform rating and a $75.00 price target on Tidewater Inc (NYSE: TDW) after the company disclosed the purchase of Wilson Sons Ultratug Offshore (WSUT) and Atlantic Offshore Services for $500 million, a figure that includes the assumption of WSUT’s existing, low-cost debt.
The transaction transfers ownership of a combined fleet of 22 platform supply vessels to Tidewater. Nineteen of those vessels were built in Brazil, and 21 of the 22 are presently active within Brazilian waters.
Tidewater CEO Quintin Kneen described the deal as "another milestone for the country," noting that the Brazilian offshore vessel market ranks among the largest and most compelling globally. Management projects the transaction will close in the second quarter of 2026.
Company forecasts indicate WSUT should contribute roughly $220 million in revenue during its first full year under Tidewater ownership, with gross margins around 58% in that period. On a cost side, the acquisition is expected to add approximately $14 million in annual general and administrative expenses. Combining those projections implies roughly $114 million of EBITDA attributable to the deal in the initial year.
Raymond James analyst James Rollyson left the firm's recommendation unchanged, preserving the Outperform rating and the $75.00 target price. At the time of the note, Tidewater shares were trading at $76.30, representing a 45% gain year-to-date and trading near the stock's 52-week high.
Analytical coverage referenced in the company note indicates that, despite recent strength in the share price, the stock appears undervalued at current levels under the cited analysis, and Tidewater's Financial Health Score is characterized as "GREAT." Additional detailed valuation metrics and supplemental research content are available through the referenced analysis platform, including ProTips and Pro Research Reports covering TDW and a broad universe of U.S. equities.
Sectors impacted - The acquisition directly affects the offshore vessel services and maritime support segments, with knock-on relevance to companies operating in Brazil's offshore market.
Timing - The parties expect to complete the transaction in the second quarter of 2026, pending customary closing conditions.