Analyst Remains Bullish on Hunting Shares After $63.5m Guyana Subsea Contract Win

Zeus Capital reiterated its buy recommendation and 540 pence price target on Hunting (LON: HTG) shares following the precision engineering group’s announcement of a $63.5 million subsea contract award for an offshore development in Guyana.

The contract, for Hunting’s titanium stress joints used on floating production, storage and offloading vessels, will be executed by the company’s Subsea Spring business unit with deliveries running through to May 2028.

Revenue recognition begins in the second half of 2026. Hunting also noted that $4.4 million of incremental orders for the same project have already been received, with further awards expected.

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Zeus analyst Daniel Slater described the win as a positive step on two fronts. First, it adds meaningfully to an order book that stood at $358 million at end-2025, down from $508.6 million a year earlier.

“It is positive to see this level of new work coming through today, and we look for further awards over the coming months,” he said.

Second, Zeus highlighted the contract as further validation of Hunting’s strategic push into deeper-water subsea work, a segment that contributed $23.7 million to the company’s reported 2025 EBITDA of $135.7 million.

“The Subsea division made a material contribution to 2025 (US$23.7m of reported US$135.7m company EBITDA), and today’s contract is further evidence that this should continue going forward, helping demonstrate the progress of this element of Hunting’s strategy,” Slater wrote.

On valuation, Zeus noted that Hunting trades at 6.5x 2026 EV/EBITDA and 16.7x price-to-earnings, above UK oil services peers at approximately 5x and 10x, respectively.

The firm argued that Hunting’s intellectual property and business momentum justify a further premium, with 7x EV/EBITDA and 18x earnings supporting its 540 pence target.