Evercore raised the target price for Seadrill (SDRL) to $3 from $2. The current price of the stock is $3.55.
In this series, we’ll look at Wall Street analysts’ recommendations and ratings for offshore drilling companies.
The factors affecting Cliffs Natural Resources (CLF) are quite different than those affecting global iron ore players Rio Tinto (RIO) and BHP Billiton (BHP).
Two major factors are driving estimates for Vale. Going forward, its total volumes should see a significant boost from iron ore volumes as its S11D project ramps up.
Cliffs Natural Resources (CLF) is mainly exposed to the US domestic steel market. It has long-term contracts with US steelmakers.
Rio Tinto has received a boost due to its recent announcement regarding $5 billion of additional free cash flow generation through productivity improvements.
Of the 19 analysts covering BHP Billiton, five have “buy” recommendations, ten have “hold” recommendations, and four have “sell” recommendations on the stock.
Earlier in this series, we analyzed iron ore miners’ ratings and estimates. In this article, we’ll discuss these miners’ technical indicators.
Analysts are concerned about Rio Tinto’s (RIO) (TRQ) overexposure to iron ore. The commodity contributes ~70% of Rio’s earnings.
Among the analysts that track Vale (VALE), 15.0% have given the company “buy” recommendations, and 23.0% have given it “sell” recommendations.
Of the 15 analysts covering Rio Tinto (RIO), 47% gave it “buy” recommendations, 27% gave it “hold” recommendations, and 27% gave it “sell” recommendations.
According to data compiled from analysts’ estimates, they expect BHP to deliver revenue of $36.7 billion for 2017, a rise of 1% year-over-year.
BHP Billiton’s (BHP) Petroleum division is an important contributor to the company. The division contributed ~30.0% to BHP’s overall earnings in 2016.
For the first time in the last four years, Goldman Sachs (GS) has advised investors to overweight commodities. It’s also raised its price forecast for iron ore.
Despite the majority of market participants expecting the contrary, iron ore prices have rallied in 2016, but the supply scenario hasn’t changed much.
In November, 83% of the analysts tracking Schlumberger rated it a “buy” or some equivalent. The other 18% of the analysts recommended a “hold” or a “sell.”
Of the 37 analysts covering Transocean (RIG), only three gave it a “buy” recommendation.
Morgan Stanley on October 25, 2016, downgraded Atwood Oceanics to “equal weight” from “overweight.”
On October 25, 2016, Morgan Stanley changed its recommendations for two offshore drilling (XLE) companies.
On October 3, 2016, Deutsche Bank (DB) upgraded Coeur Mining (CDE) from “sell” to “hold.” The firm also increased its target price from $7.50 to $11.