Source: Sharecast
The deal has now been completed, and Berenberg moved to include its contribution in its estimates from H225 onwards, noting that the business will increase Hunting's gearing to the "attractive subsea oil and gas market".
Berenberg said the subsea oil and gas market will make up 18% of group revenue on its FY26E estimates and highlighted that margins were accretive to the group. It also said the outlook for future activity levels "remains positive".
"We update our model to include FES's contribution from H225 and adjust our EV estimate for the £50.0m consideration paid from available cash. We expect consensus EBITDA estimates for 2026 to increase by circa 7%," said the German bank, which reiterated its 'buy' rating on the stock.
"We also take the opportunity to adjust our wider group estimates to consider current market conditions, including higher volatility in commodity prices. Our group EBITDA estimates change by -3%, 0% and -2% in 2025E, 2026E and 2027E, respectively."
Reporting by Iain Gilbert at Sharecast.com