Wall Street analysts’ forecasts

In this part, we’ll look at Wall Street analysts’ recent forecasts for Diamond Offshore Drilling (DO).

What Are Analysts’ Forecasts for Diamond Offshore Drilling?

Consensus rating for Diamond Offshore Drilling

Approximately 6% of analysts tracking Diamond Offshore Drilling rate it a “buy” or some equivalent. Approximately 61% rate the company a “hold” or some equivalent. The remaining 33% rated it a “sell.” Diamond Offshore Drilling accounts for 0.18% of the Guggenheim S&P 500 Equal Weight ETF (RSP).

In comparison, ~78% of the analysts tracking Superior Energy Services (SPN) rate it a “buy” or some equivalent. Approximately 22% of the analysts tracking it rate it a “hold.” Superior Energy Services doesn’t have any “sell” recommendations. Superior Energy Services is Diamond Offshore Drilling’s peer.

Analysts’ recommendations 

When it comes to individual recommendations, BMO Capital Markets—the investment banking subsidiary of Canadian Bank of Montreal—gave Diamond Offshore Drilling a target price of $13. Currently, Diamond Offshore Drilling trades near $18.4. This implies a 129% return over the next 12 months. Evercore ISI is an independent investment research firm. It gave a $23 target price for Diamond Offshore Drilling. At its current share price, this implies a 25% return over the next 12 months.

American investment bank Morgan Stanley (MS) gave Diamond Offshore Drilling a target of $12—one of its lowest target prices. This implies a -35% return from Diamond Offshore Drilling over the next 12 months.

Analysts’ targets 

While the highest target price for Diamond Offshore Drilling is $27, the lowest is $12. The median target price, surveyed among sell-side analysts, for Diamond Offshore Drilling is ~$18.4. Currently, Diamond Offshore Drilling is trading at ~$18.6. This implies a ~3% upside at its median price.

Learn more about the oil and gas industry, visit Market Realist’s Energy and Power page.

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