Credit Suisse Downgrading Oceaneering Intl.

Credit Suisse is out with a research report on Oceaneering Intl. Inc. OII and is downgrading shares to Neutral from Outperform. It is keeping its $48 price target. In a note to clients, Credit Suisse writes, "Since our upgrade to OP last December, we think the central theses have "played out", specifically, that the Gulf of Mexico would indeed improve and additional business opportunities related to ROV Tooling would develop. Shares have outperformed deepwater equipment peers FTI and CAM by 1,000 bps since December. Growth opportunities remain solid for OII and our medium term estimates could prove too low, again we think most likely in Subsea Products revenues. But we believe shares have come closer to appreciating the earnings leverage through this upcoming cycle and can see better value/upside in other names." Shares of OII closed at $43.20 on Friday.