Digging Deep into Seadrill's 3Q16 Earnings

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Part 9
Digging Deep into Seadrill's 3Q16 Earnings PART 9 OF 10

Analysts Have Been Quiet on Seadrill for Some Time

No upgrades or downgrades

After Seadrill (SDRL) released its 3Q16 earnings, no Wall Street analysts either upgraded or downgraded its stock, unlike Diamond Offshore (DO) and Rowan Companies (RDC). 

Diamond Offshore was upgraded by Capital One and Swedbank following its 3Q16 results. Rowan Companies was upgraded by Société Générale after its 3Q16 earnings.

Analysts Have Been Quiet on Seadrill for Some Time

For quite a few months now, there hasn’t been any rating action on Seadrill. In January 2016, Morgan Stanley and Merrill Lynch downgraded the stock, after which no analyst has either downgraded or upgraded it.

Seadrill’s ratings

Wall Street analysts have a 12-month price target of $1.5 for Seadrill, compared to $2.5 on November 22, 2016. A total of 27 analysts gave recommendations on the company’s stock. None gave Seadrill “buy” recommendations. It has “hold” recommendations from six analysts and “sell” recommendations from 21 analysts, according to a Bloomberg consensus.

Peers’ recommendations

Below are analysts’ recommendations for other offshore drilling companies (OIH):

  • Transocean (RIG): 11% of analysts recommend a “buy,” 43% recommend a “hold,” and 46% recommend a “sell.”
  • Pacific Drilling (PACD): 7% of analysts have given it “buys,” 40% have given it “holds,” and 53% have given it “sells.”
  • Atwood Oceanics (ATW): 10% of analysts recommend a “buy,” 55% recommend a “hold,” and 35% recommend a “sell.”
  • Ocean Rig (ORIG): 0% of analysts recommend a “buy,” 12% recommend a “hold,” and 88% recommend a “sell.”
  • Noble (NE): ~15% of analysts have given it “buys,” 54% have given it “holds,” and 31% have given it “sells.”
  • Rowan Companies (RDC): 22% of analysts recommend a “buy,” 62% recommend a “hold,” and 16% recommend a “sell.”

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