An analyst from Stifel, Stephen Gengaro, has adjusted the price target for Civeo (CVEO, Financial) shares, reducing it from $28 to $27 while maintaining a Buy rating. In recent developments, Civeo reported a first-quarter EBITDA that slightly surpassed expectations. However, the company revised its guidance for 2025 and shifted its capital return strategy. It has now pledged to allocate all of its free cash flow towards repurchasing 20% of its outstanding shares, thereby suspending its dividend payments.
This approach aligns with the preferences of Civeo's major shareholders, according to the firm. As a result of these changes, modest reductions have been made to the financial forecasts for 2025 and 2026.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for Civeo Corp (CVEO, Financial) is $29.00 with a high estimate of $30.00 and a low estimate of $28.00. The average target implies an upside of 55.25% from the current price of $18.68. More detailed estimate data can be found on the Civeo Corp (CVEO) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Civeo Corp's (CVEO, Financial) average brokerage recommendation is currently 1.0, indicating "Buy" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Civeo Corp (CVEO, Financial) in one year is $25.81, suggesting a upside of 38.17% from the current price of $18.68. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Civeo Corp (CVEO) Summary page.
CVEO Key Business Developments
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Civeo Corp (CVEO, Financial) increased its share repurchase authorization from 10% to 20% of total shares outstanding, demonstrating a commitment to returning capital to shareholders.
- The company has generated free cash flow consistently for the past 10 years, highlighting its strong cash flow generation capabilities.
- Civeo Corp (CVEO) reported a 13% year-over-year revenue increase in its Australian segment, driven by strong occupancy levels and a significant contract renewal.
- The company is making progress on its acquisition in the Australian Bowen Basin, expected to be immediately accretive to operating cash flow upon closing.
- Civeo Corp (CVEO) maintains a strong liquidity position with approximately $162 million, supporting its capital return strategy and acquisition plans.
Negative Points
- Civeo Corp (CVEO) reported a net loss of $9.8 million for the first quarter of 2025, reflecting challenges in its financial performance.
- The Canadian segment experienced a significant decline in revenues, down from $67.2 million in Q1 2024 to $40.4 million in Q1 2025, due to reduced customer spending and economic uncertainty.
- The company recorded a restructuring charge of approximately $1 million in Canada, reflecting ongoing efforts to align costs with the current market environment.
- Civeo Corp (CVEO) lowered its full-year 2025 revenue and adjusted EBITDA guidance, indicating a cautious outlook amidst macroeconomic challenges.
- The company suspended its quarterly dividend to prioritize share repurchases, which may not be favorable for income-focused investors.
