Credit Suisse Upgrades Oceaneering Int'l To Outperform

Credit Suisse has published a research report on Oceaneering International Inc. OII and has upgraded the company to Outperform from Neutral. In the report, Credit Suisse writes "We raise our ROV and more significantly our Subsea Products multi-year revenue outlooks, in part to reflect additional floating rigs now expected to be ordered in 2011+ and in part to "correct" our overly conservative forecasts. Our 2011/2012 EPS estimates is revised to $3.55/$4.40 from $3.60/$4.30. Subsea Products the biggest change in our outlook: The most intriguing Products segments include (1) ROV Tooling packages, including a product that more quickly activates subsea BoPs; (2) subsea hardware - Grayloc connectors should get a boost from recent FTI order strength; and (3) umbilicals, which also has strong incremental margin potential, in our view." Credit Suisse has also raised the price target on Oceaneering Int'l to $93 from $65. Oceaneering Int'l closed yesterday at $72.87.