Gulfmark shares fall as analysts debate stock's valuation

NEW YORK—Shares of Gulfmark Offshore Inc., which provides transportation services to offshore energy companies, fell Thursday after an analyst said shares were richly valued while another argued the opposite.

Capital One Southcoast analyst Kelly Chancey, in a Thursday client note, downgraded the shares to "Hold"-equivalent from "Buy"-equivalent, noting shares are up nearly 40 percent in three months. He also raised his price target to $63 from $62.

Chancey's moves came despite Gulfmark's strong first-quarter earnings, up 32 percent, and revenue, up 27 percent, both of which beat estimates of analysts surveyed by Thomson Financial.

Other analysts were more upbeat on the company than Chancey.

Jefferies & Co. Inc. analyst Judson Bailey, in a client note, raised his price target to $69 from $59 and increased his earnings-per-share estimate for this year to $5.87 from $4.86.

Analysts, on average, expect full-year 2008 earnings per share of $5.58.

Bailey called the shares "undervalued," noting the "continued strength in the global (offshore supply vessel) market and the massive demand growth potential offshore Brazil." He also cited "prospects for further improvements in dayrates."

Shares fell $4.41, or 7.4 percent, to close at $55.39.