Stifel raised its price target for Civeo Corporation (NYSE: CVEO) to $33.00 from $28.00 on Wednesday and left its rating at Buy, citing the company’s positioning to capture growth across its Australian and North American businesses. The stock was trading at $26.22 at the time referenced, and third-party data indicate the shares appear undervalued relative to a Fair Value assessment.
The research note identifies several operational and financial attributes that underpinned the target increase. Stifel pointed to Civeo’s Australian operations as a key growth engine, noting the business benefits from strong core operations and the May 2025 addition of four villages in the Bowen Basin. The firm also flagged recent strength in metallurgical coal prices as a potential tailwind that could drive further expansion in the second half of 2026 and beyond.
On the North American front, Stifel noted potential upside tied to energy and infrastructure project pipelines. The analyst called out a set of liquefied natural gas - LNG - infrastructure projects that remain pending final investment decisions, along with opportunities in the data center segment, as avenues that could support increased demand for workforce housing solutions.
From a liquidity perspective, external analysis shows Civeo’s current ratio at 1.64, which indicates that short-term obligations are covered by liquid assets. Stifel emphasized this financial flexibility as a factor that could allow the company to pursue growth opportunities across regions without immediate strain on its balance sheet.
Operational capacity was another focal point of the firm’s analysis. Stifel highlighted that Civeo can rapidly satisfy client demand with approximately 2,500 mobile rooms immediately available, plus access to up to 1,100 additional mobile camp rooms within its broader network of about 17,000 rooms. That on-hand capacity is part of the rationale for the new price target, which Stifel derived using a 5-6 times multiple on estimated 2027 EBITDA. The prior target had been based on 2026 estimates.
For comparative context, the company’s current enterprise value to EBITDA ratio was cited at 7.16 times, based on last twelve months EBITDA of $68.9 million, a measure investors and analysts use to gauge valuation versus peers and historical levels.
In separate company developments, Civeo secured a four-year contract with Ontario’s Ministry of the Solicitor General to supply meals to provincial correctional facilities. Valued at C$24 million, the agreement is due to begin in April 2026 and will include the delivery of roughly 20,000 meals per day to ten facilities across Ontario. The contract contains an option to extend the term by an additional two years.
Civeo also announced board changes as part of a cooperation agreement with activist investor Engine Capital LP. Jeffrey B. Scofield and Daniel B. Silvers have been appointed to the board, temporarily expanding it to 11 members. The company said two current directors will not stand for reelection at the 2026 Annual Meeting, which will return the board to nine members. Stifel presented these moves alongside the firm’s strategic and operational observations as elements supporting its revised valuation.
Overall, Stifel’s update reflects a valuation shift toward 2027 earnings expectations, an emphasis on available capacity to capture immediate demand, and a view that commodity and project-specific developments in mining and energy could provide incremental demand. The company’s recent contract award in Ontario and board adjustments were presented as additional signals of active strategic management and new partnership dynamics.
Analyst note: The materials and figures cited above reflect Stifel’s published views and accompanying financial measures used in its valuation. The company’s liquidity, room inventory, contract awards, and board changes were explicitly referenced as part of Stifel’s rationale for the new price target.