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Wall Street Analysts’ Ratings of Offshore Companies

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Analyst ratings

Having looked at offshore drilling companies’ (OIH) leverage in the last part of this series, we will now compare Wall Street analyst consensus ratings of these companies. The consensus analyst rating refers to the current average rating of all analysts. The rating scale ranges from 1 to 5, where 1 means “Strong Sell” and 5 means “Strong Buy.” Also, we will see how many analysts rate each stock as a Buy, Sell, or Hold.

 

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Seadrill (SDRL)

Seadrill (SDRL) has a Wall street analyst consensus rating of 2.31, or “Hold.” Out of the 35 analysts who provided recommendations, six analysts gave it a “Buy,” nine a “Hold,” and 20 a “Sell.” The average 12-month price target is $19.9 against a market price of $16.67 as of September 11, implying a return of 19.4%.

Ensco (ESV)

Ensco (ESV) has a Wall Street analyst consensus rating of 2.53, or “Hold.” Out of the 34 analysts who provided recommendations, two analysts gave it a “Buy,” 21 a “Hold,” and 11 a “Sell”. The average 12-month price target is $18 against a market price of $15.48 as of September 11, implying a return of 16.3%.

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Diamond Offshore (DO)

Diamond Offshore (DO) has a Wall Street analyst consensus rating of 1.88, or “Sell.” Out of the 34 analysts who offered recommendations, none of the analysts gave it a “Buy,” fourteen gave it a “Hold,” and 20 gave it a “Sell.” The average 12-month price target is $19.92 against a market price of $21.99 as of September 11, implying a negative return of 9.4%.

Rowan Companies (RDC)

Rowan Companies (RDC) has a Wall Street analyst consensus rating of 3.37, or “Buy.” This rating is the highest among the four peer companies. Out of the 35 analysts who provided recommendations, 12 of the analysts gave it a “Buy,” 17 a “Hold,” and six a “Sell.” The average 12-month price target is $19.90 against a market price of $16.67 as of September 11, implying a return of 19.4%.

Investors should keep in mind that analysts’ ratings and recommendations change over time as their outlook for the companies and the industry changes.

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