NEW YORK (TheStreet) -- Jefferies downgraded Oceaneering International (OII) stock to "hold" from "buy" today and lowered its price target to $68 from $80 on the offshore oil and gas services company.
"Our downgrade reflects modest caution across the company's deepwater businesses. In particular, we can imagine a less robust year for installation-related activity in Projects and Products following a relatively quiet year in subsea hardware orders in 2014," analysts said.
"We do lower OII's ROV utilization assumptions, in part to reflect risk of more aggressive than expected retirements and lower utilization across the floater fleet (including some risk of additional delays in putting newbuild drillships to work through 2015) and in part to reflect risk of lower utilization with field support vessels," analysts continued.
"Finally, we have lowered our terminal growth rate to 2.5% from 3% to reflect the more subdued growth outlook. We note that we think the greatest risk to our more negative view is OII's ability to gain/create market share in its life-of-field offerings through its innovative ROV Tooling products," analysts added.
Shares of Oceaneering International are down 0.45% to $61.66 in pre-market trading.
Separately, TheStreet Ratings team rates OCEANEERING INTERNATIONAL as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: