Atwood Oceanics has delayed the delivery of two ultra deepwater drillships, the Atwood Admiral and the Atwood Archer, by two years. Also, the company has delayed the milestone payments for these rigs.
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Atwood Oceanics has secured one well drilling contract for its ultra deepwater rig, the Atwood Osprey. The contract will begin between May 24, 2017, and July 7, 2017. This contract will be for ~130 days at a day rate of $185,000 per day.
RBC downgraded Atwood to “underperform” from “sector perform.” Jefferies raised the target price to $13 and maintained a “hold” recommendation on the stock. On the other hand, Seaport Global cut the target price for Atwood Oceanics to $6 from $6.5.
30 Wall Street analysts cover Atwood Oceanics (ATW). It has a consensus rating of 3.5, which means a “sell.” Out of the 35 analysts, none of the analysts give the company a “strong buy” rating. Transocean (RIG) has “strong buy” recommendation from three analysts. Rowan Companies (RDC) also has “strong buy” from three analysts. Not a single analyst has given Ocean Rig (ORIG) or Seadrill (SDRL) a “strong buy.”
Of the 35 analysts, three analysts give ATW a “buy.” 19 analysts give the company a “hold,” eight analysts give it a “sell,” while four analysts give it a “strong sell.”
Atwood Oceanics’ target price is $9.1, which implies a downside potential of 34%.