Hunting PLC's (LSE:HTG) Subsea Technologies division and its recent acquisitions, including Organic Oil Recovery (OOR), are a marked point of difference from other energy services providers, said RBC Capital Markets as it upped its price target on the shares and reiterating an 'outperform' rating.
The analysts, who hiked their price target to 500p from 440p, highlighted freshly upgraded long-term growth targets from the FTSE 250 group.
This includes a revised 2030 revenue goal of $470 million for the Subsea Technologies segment, up from a previous target of $250 million. Analysts anticipate that roughly a third of the subsea revenue target will come from further acquisitions.
RBC's higher target reflects a valuation based on 2027 earnings and revised forecasts, which reflect contributions from recent acquisitions, including last year's addition of OOR, as well as a robust demand outlook for offshore oil and gas services.
The broker said Hunting continues to benefit from a differentiated M&A strategy and a strong balance sheet, with approximately $60 million in net cash at the end of 2025.
As for OOR, the business is seen as a potentially transformational growth opportunity. Acquired last March, OOR uses nutrient-based enhanced oil recovery technology to increase reservoir efficiency at a lower cost than traditional methods.
Hunting is targeting $100 million in OOR revenues by 2030, with RBC modelling upside to over $350 million by 2035. The business also enjoys EBITDA margins of around 50%.
"We expect test results during 2026 to prove pivotal for both OOR adoption and investor sentiment, as we think the technology remains undervalued in Hunting's current share price," the analysts said.