NEW YORK (TheStreet) -- Shares of Oceaneering International (OII) - Get Free Report are climbing 4.05% to $33.36 late Friday morning as RBC Capital Markets upgraded the stock to "sector perform" from "underperform" and raised its price target to $36 from $30.
"Since early February, OII shares have 'underperformed.' However, today's FTI/TEC merger changes the industry dynamic and increases the possibility of additional M&A (mergers and acquisitions)," RBC analysts said in an investor note.
FMC Technologies (FTI) announced its merger with French oil-services rival Technip SA (TECN) yesterday. The all-share deal will form a new company, TechnipFMC, marketed at $13 billion.
"In our view, the prospects of industry M&A activity offset near-term fundamental headwinds," RBC noted.
Headwinds for Oceaneering International include expectations of the offshore rig count to decline through 2016 and the fact that operators continue to be selective with spending, "which will likely impact the Products and Projects segments," according to the firm.
Meanwhile, Crude oil (WTI) is down 0.12% to $48.10 per barrel and Brent oil is up 0.10% to $48.86 per barrel, CNBC reports this morning.
The Houston-based oilfield provider of engineered services and products to the offshore oil and gas industry focuses on deep water applications.
Separately, TheStreet Ratings rated Oceaneering International as a "hold" with a score of C.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon.
Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
The primary factors that have impacted this rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and good cash flow from operations.
However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including feeble growth in the company's earnings per share, poor profit margins and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: OII