---
title: "HMH Holding Inc. Class A Initiated at Buy on Offshore Cycle Upside, Strong FCF Profile, and Discount Valuation"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/284123824.md"
description: "HMH Holding Inc. Class A has been initiated with a Buy rating by Citi analyst Scott Gruber, citing strong free cash flow and benefits from a strengthening offshore drilling cycle. Gruber highlights the company's future EBITDA growth from contracted deepwater rig restarts and expansion opportunities in shallow water drilling and mining. The stock is valued at a discount to 2027 EBITDA, despite risks from oil price fluctuations and execution challenges. Gruber is a 5-star analyst with a 61.52% success rate in the Energy sector."
datetime: "2026-04-26T22:15:18.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/284123824.md)
  - [en](https://longbridge.com/en/news/284123824.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/284123824.md)
---

# HMH Holding Inc. Class A Initiated at Buy on Offshore Cycle Upside, Strong FCF Profile, and Discount Valuation

HMH Holding Inc. Class A (HMH) has received a new Buy rating, initiated by Citi analyst, Scott Gruber.

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Scott Gruber has given his Buy rating due to a combination of factors that highlight both cyclical and structural upside for HMH Holding Inc. Class A. He sees the company as a key beneficiary of a strengthening offshore drilling cycle, with a substantial portion of future EBITDA growth already underpinned by contracted deepwater rig restarts that carry significant installed HMH equipment content.

In addition, he emphasizes HMH’s attractive financial profile, including strong free cash flow conversion and an aftermarket-oriented business mix that typically supports higher valuation multiples. Gruber also notes the company’s expansion opportunities in shallow water drilling, land drilling, and mining, and values the stock at a discount multiple to 2027 EBITDA that still reflects superior operating metrics versus more diversified peers, while acknowledging elevated risk from potential oil price declines and execution challenges.

According to TipRanks, Gruber is a 5-star analyst with an average return of 16.2% and a 61.52% success rate. Gruber covers the Energy sector, focusing on stocks such as Halliburton, Schlumberger, and Baker Hughes Company.

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