HSBC Initiates Coverage on Ensco with ‘Buy’ Rating
On October 19, 2017, HSBC initiated coverage on Ensco with a “buy” rating and a target price of $7.3.
Ensco’s (ESV) estimated $457 million in revenues in 3Q17 would be a 16.6% fall year-over-year, similar to 2Q17 revenue of $457 million.
Ensco (ESV) released its quarterly fleet status report on October 19, 2017, its first fleet report since it acquired Atwood Oceanics (ATW).
Ensco (ESV) plans to release its 3Q17 results on Thursday, October 26, 2017, before the market opens.
Noble Corporation (NE) is scheduled to release its third-quarter results on Thursday, November 2. In the previous part of this series, we saw that analysts rated Noble Corporation as a “hold.”
We’ve discussed analysts’ recommendations and price targets for Seadrill (SDRL) and Diamond Offshore (DO) in this series. In this part, we’ll discuss the metrics for Noble Corporation (NE).
Previously in this series, we saw that most analysts rate Diamond Offshore Drilling (DO) a “hold.” In this part of our series, we’ll see how analysts view Diamond Offshore Drilling’s 3Q17 revenues and EBITDA.
Diamond Offshore (DO) closed at $14.47 on October 12. Over the last month, DO’s stock has had a good run with a 16.3% return.
On October 12, Citigroup raised its target price for Ensco to $7.7 from $7.10. On October 10, Deutsche Bank initiated coverage on Ensco (ESV) with a “hold” rating.
Seadrill (SDRL) filed for Chapter 11 bankruptcy protection in September. The company had applied for a “first-day” motion, and on September 13, it got approval from the court.
Out of the 29 analysts covering Ensco, 45% of them are bullish on the stock.
On October 7, 2017, Evercore reduced its target price for Ensco to $10 from $11.
The uncertainty hovering around the Ensco-Atwood Oceanics merger for more than four months has at last come to a halt.
Jefferies raised the target price for Rowan Companies (RDC) to $13 and maintained a “hold” rating.
According to UBS analyst Angie Sedita, the offshore drilling industry is set to recover in coming years.
On September 25, UBS raised Ensco (ESV) from “neutral” to “buy.” It also raised the target price to $8 from $6.
Ensco believes the combination preserves the company’s financial strength and balance sheet with a pro forma liquidity position of $3.3 billion as of June 30, 2017.
Ensco would acquire Atwood Oceanics’ rigs at ~$222 million per floater, which Ensco believes is a compelling price.
On October 5, 2017, investors are scheduled to vote for or against Ensco’s pending acquisition of Atwood Oceanics (ATW). Ensco has asked its investors to vote for this acquisition.
Offshore drilling stocks traded in the green in September. On Monday, September 25, offshore drilling stocks jumped between 4% to 10% as UBS raised the target price for these drilling companies.