Oceaneering upgraded to Equal Weight from Underweight at Barclays

Barclays analyst Eddie Kim upgraded Oceaneering (OII) to Equal Weight from Underweight with a price target of $26, up from $22. With the “bearish” oil macro environment weighing on global spending and investor sentiment, the firm downgraded the energy services sector to Neutral from Positive. The cycle is slowing and global spending is projected to be flat in 2025 with downside risk, the analyst tells investors in a research note. The firm says “it’s a pause, not the end of the cycle,” with the next leg driven by deepwater, but adds that upstream spending “could get worse before better.” Barclays believes Oceaneering’s robotics business is a “moat business” with high margins, low capex, limited competition with both rigs and vessels driving demand.