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Have Analysts Changed Their Recommendations for PACD after 3Q16?

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Updated

No upgrade downgrades

After Pacific Drilling (PACD) released its 3Q16 earnings, no Wall Street analysts either upgraded or downgraded its stock, unlike Diamond Offshore (DO) and Rowan Companies (RDC)

Diamond Offshore was upgraded by Capital One and Swedbank following its 3Q16 results. Rowan Companies was upgraded by Société Générale after its 3Q16 earnings.

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Analysts’ recommendations

Of the 15 analysts covering Pacific Drilling, 7% have given it “buy” recommendations, 40% have given it “holds,” and 53% have given it “sells.” 

The average target price for Pacific Drilling is $3, compared to its current price of $3.13 as of November 10, 2016. This implies a potential downside of 4%.

Peers’ recommendations

Below are analysts’ recommendations for other offshore drilling companies (OIH):

  • Transocean (RIG): 11% of analysts recommend a “buy,” 43% a “hold,” and 46% a “sell.”
  • Seadrill (SDRL): 0% of analysts recommend a “buy,” 22% a “hold,” and 78% a “sell.”
  • Atwood Oceanics (ATW): 10% of analysts recommend a “buy,” 55% a “hold,” and 35% a “sell.”
  • Ocean Rig (ORIG): 0% of analysts recommend a “buy,” 12% a “hold,” and 88% a “sell.”
  • Noble (NE): ~15% gave the company a “buy,” 54% gave it a “hold,” and 31% gave it a “sell.”
  • Rowan Companies (RDC), 22% gave it a “buy,” 62% gave it a “hold,” and 16% gave it a “sell.”
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