Wells Fargo Raises Oceaneering International Valuation From $68-70 to $76-80

Wells Fargo is raising its Oceaneering International, Inc. OII valuation from $68-70 to $76-80 and downgrading the stock to Market Perform, “as our new valuation range proffers just 4-9% appreciation potential.” “Our valuation rises as a result of rolling our target multiples forward to 2012, and compressing them, but only by a mere 25 bps from 7.2-7.5x to 6.9-7.3x as we now believe that the bulk of the mid-cycle year for deepwater activity and equipment orders will fall in 2012, not 2011 as we previously assumed,” Wells Fargo writes. Oceaneering International currently trades at $71.74.