Wall Street analysts’ ratings

In this part of the series, we’ll compare Wall Street analysts’ consensus ratings for the offshore drilling companies we’ve been analyzing. We’ll also check out the 12-month price targets for offshore drilling (IYE) companies.

These ratings and target returns are based on analysts’ views of the companies and the industry. Remember, views can change as outlooks change.

Seadrill Has the Most ‘Sell’ Ratings among Its Peers

Most “buy” ratings

Of the 35 analysts covering Ensco (ESV) stock, 11 (or 31%) have recommended “buys.” Of the 35 analysts tracking Rowan Companies (RDC) stock, eight (or 22.0%) have recommended “buys.”

Most “sell” ratings

Of the 12 analysts covering Seadrill (SDRL), 58% have given the company “sell” ratings. For Transocean (RIG), 15 out of 36 analysts have given it “sell” recommendations—that’s almost 42%.

Highest returns

Only one analyst is covering Seadrill Partners (SDLP). The analyst has given the company a consensus 12-month target price of $8 compared to its current price of $3.4, which implies a return potential of 135%.

Though many have recommended “sells” for Seadrill, it has a high 12-month target price. The consensus 12-month target price for the stock is $2.45, which implies a potential upside of 75%.

Lowest returns

Diamond Offshore Drilling (DO) has a consensus 12-month target price of $16.95, which implies a potential upside of 3.8%. This is the lowest potential return among the offshore drilling companies under review.

Atwood Oceanics (ATW) has a target price of $10.53. Compared to its current price, this target implies a potential upside of 8.2% for the stock.

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