What Are Analysts Recommending for Ocean Rig?



Ocean Rig’s ratings

Wall Street analysts have a 12-month price target of $1.72 for Ocean Rig (ORIG) compared to the current price of $2.07 on May 23, 2016. A total of 12 analysts gave recommendations on the company’s stock. Ocean Rig has “buy” recommendations from 17% of the analysts covering the stock. It has “hold” recommendations from 17% of the analysts and “sell” ratings from 66%, according to the Bloomberg consensus.

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Pareto Securities has issued ORIG the highest target price of $6. The lowest target price of $0.50 came from Barclays and Nordea. After Ocean Rig’s first quarter results were released, Evercore increased its target price to $3 from $1.30. It maintained its “hold” rating. We’ll look at what analysts are recommending for other offshore drillers (XLE) below.

Ocean Rig’s peers

Below are Wall Street analysts’ consensus recommendations for other offshore drillers (IYE):

  • Seadrill (SDRL) is covered by 31 analysts. None has given Seadrill a “buy,” but about 35% have given the company a “hold” recommendation. About 65% have given it a “sell” recommendation.
  • Noble (NE) is covered by 39 analysts. About 26% of them gave the company a “buy,” 41% gave it a “hold,” and 33% gave it a “sell” recommendation.
  • Of the 35 analysts covering Diamond Offshore Drilling (DO), 5% gave it a “buy,” 57% gave it a “hold,” and 37% give it a “sell” recommendation.
  • Of the 18 analysts covering Pacific Drilling (PACD), 11% gave it a “buy,” 50% gave it a “hold,” and 38% gave it a “sell” recommendation.

In the final part of our series, we’ll see where Ocean Rig’s valuation stands among its peers.


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