uploads///Susquehanna Revised Target Price

Offshore Drillers: Analysts’ Target Prices and Recommendations

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Offshore drilling

As we saw earlier in this series, oil prices fell below $45 per barrel last week. Offshore drilling is one of the industries that will be impacted the most by lower oil prices. Susquehanna slashed the target price for offshore drilling stocks on June 20, 2017.

 

 

The following are details for Susquehanna’s revised target prices.

  • Noble’s (NE) target price was cut to $4 from $5. The stock’s closing price that day was $3.89. The revised target price implies a potential upside of 10.8%.
  • Diamond Offshore’s (DO) target price was cut to $13 from $16. The stock’s closing price was $11.02. The revised target price implies a potential upside of 17.9%.
  • Rowan Companies’ (RDC) target price was cut to $11 from $15. The stock’s closing that day was $11.38, which implies a potential downside of 3.3%.
  • Transocean’s (RIG) target price was cut to $9 from $12. The stock’s closing price that day was $8.2, which implies a potential upside of 9.7%.
  • ENSCO’s (ESV) target price was cut to $5 from $9. The stock’s closing price that day was $5.38, which implies a potential downside of 7%.
  • Atwood Oceanics’ (ATW) target price was cut to $8 from $9. The stock’s closing price that day was $8.48, which implies a potential downside of 5.6%.

Piper Jaffray revised the target prices and recommendation for Atwood Oceanics and ENSCO in the last week.

On June 19, 2017, Piper Jaffray downgraded Atwood Oceanics to “neutral” from “overweight.” It also reduced the target price to $10 from $15. The downgrade was before the anticipated acquisition of ATW by ENSCO in 3Q17. On the other hand, Piper Jaffray upgraded ENSCO to “overweight” from “neutral.”

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