Seadrill on the Street: Analyst Recommendations after the 1Q17 Results



Seadrill’s consensus analyst rating

According to data compiled by Thomas Reuters, Seadrill (SDRL) has a consensus rating of 3.5, which means a “hold.”

Analyst Ratings
The consensus ratings for Seadrill’s offshore drilling (IYE) peers are as follows:

  • Transocean (RIG): 3.22, or “hold”
  • Noble (NE): 2.86, or “hold”
  • Rowan Companies (RDC): 2.71, or “hold”
  • Ensco (ESV): 2.66, or “hold”
  • Diamond Offshore (DO): 3.06, or “hold”
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Seadrill’s consensus recommendations

Ten analysts have given recommendations for Seadrill. Out of these, two analysts have given a “buy,” and another two analysts recommend a “hold” for the stock. Notably, 50% of the analysts suggest a “sell” for Seadrill stock. The remaining analyst has recommended a “strong sell.”

As Seadrill’s fundamentals have deteriorated, many analysts have dropped Seadrill from their coverage. In January 2016, 15 analysts were covering Seadrill, and at the time, three analysts were bullish on the stock and gave “buy” recommendations.

But the scenario has changed over the past year. The number of analysts covering Seadrill has gradually decreased, and now only ten analysts are giving recommendations on the stock. The company hasn’t seen any upgrades or downgrades by Wall Street analysts since 2Q16.

Notably, in 1Q16, Morgan Stanley, Merrill Lynch, and J.P. Morgan all downgraded Seadrill.


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