Oceaneering International Inc. (OII), the largest supplier of undersea robots to the oil industry, rose the most in more than six months after Morgan Stanley (MS) raised its rating on the stock to the equivalent of a buy from a sell.
Oceaneering, based in Houston, rose 4.3 percent to $58.68 at the close in New York, the most since June 29, after touching $59.24.
Morgan Stanley’s Ole Storer today raised his rating on Oceaneering to overweight, the equivalent of a buy, from underweight, equivalent to a sell, and forecasted higher demand for Oceaneering’s remotely operated vehicles, known as ROVs. Installation of valves in subsea oil fields, which use ROVs, is accelerating, he wrote.
“There is enough demand to absorb several years of peak ROV building,” Storer wrote. “As a result, we expect ROV day- rate growth to surpass cost inflation.”
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