Tidewater (TDW) Stock Sees 31.5% Upside Potential According to Wall Street Analysts

Tidewater (TDW) closed at $56.88, gaining 7.3% over the past four weeks. Wall Street analysts' mean price target of $74.8 indicates a 31.5% upside potential. However, the ability and unbiasedness of analysts in setting price targets have long been questionable. Strong agreement among analysts about the company's ability to report better earnings strengthens the view of a potential upside.

Tidewater Inc. (NYSE: TDW) closed at $56.88 on July 2, 2025, marking a 7.3% gain over the past four weeks. Wall Street analysts' mean price target of $74.8 indicates a 31.5% upside potential for the stock. However, the reliability of analysts in setting price targets has been a subject of debate. The strong consensus among analysts about Tidewater's earnings strength supports the view of a potential upside.

Analyst Price Targets and Ratings

Evercore ISI recently increased its price target for Tidewater from $60.00 to $67.00, reflecting a 6.53% potential upside from the previous close. Raymond James Financial also revised its target price downwards from $76.00 to $70.00, setting an "outperform" rating for the company. BTIG Research lowered its rating from a "buy" to a "neutral" rating, indicating a more cautious view [1].

Earnings Performance

Tidewater reported an impressive earnings per share (EPS) of $1.23 for the last quarter, significantly exceeding the consensus estimate of $0.28. The company's quarterly revenue was up 2% year-over-year, reaching $341.43 million. The company also announced a new share buyback program of $500 million, which represents over 20% of its market capitalization [1].

Shareholder Activity

Institutional investors have been actively involved in Tidewater's stock. Several large investors, including Commonwealth Equity Services LLC, KLP Kapitalforvaltning AS, LPL Financial LLC, Schroder Investment Management Group, and Russell Investments Group Ltd., have increased their stakes in the company. Insiders have also shown interest in the stock, with Director Robert Robotti and EVP Daniel A. Hudson making recent transactions [1].

Challenges Ahead

Despite the positive outlook, Tidewater faces several challenges. The company has not received payment from a primary customer in Mexico, which accounts for approximately 14% of its total trade accounts receivable. Additionally, the company has experienced a 12 percentage point decrease in gross margin in Africa due to lower day rates, reduced utilization, and higher repair, maintenance, and fuel costs [2].

Conclusion

Tidewater's stock has shown strong performance, with analysts predicting a significant upside potential. However, investors should be cautious and consider the company's challenges, such as payment delays and regional profitability concerns. The strong consensus among analysts about Tidewater's earnings strength supports the view of a potential upside, but investors should remain vigilant and monitor the company's performance closely.

References:

[1] https://www.marketbeat.com/instant-alerts/evercore-isi-forecasts-strong-price-appreciation-for-tidewater-nysetdw-stock-2025-08-06/
[2] https://www.fool.com/earnings/call-transcripts/2025/08/05/tidewater-tdw-q2-2025-earnings-call-transcript/