Jefferies and Credit Suisse Cut Diamond Offshore’s Target Price



Diamond Offshore

So far in this series, we’ve looked at what Wall Street analysts expect for Diamond Offshore Drilling’s (DO) revenue and EBITDA (earnings before interest, tax, depreciation, and amortization). 

Now, let’s look at the recent changes analysts have made to DO’s target prices and recommendations.

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Recent changes

On July 18, 2017, Jefferies reduced its target price for Diamond Offshore to $12 and maintained its “hold” rating on the stock. One day earlier, Credit Suisse cut its target price to $13 from $18. In the same month, Wells Fargo reduced DO’s target price to $12 from $17.5.

Consensus rating

The consensus rating for Diamond Offshore is 3.2, according to Reuters. This rating means a “hold.” The following are the consensus ratings for other offshore drillers (OIH):

  • Seadrill (SDRL): 3.6 (“sell”)
  • Ensco (ESV): 2.7 (“hold”)
  • Noble Corporation (NE): 3.1 (“hold”)
  • Pacific Drilling (PACD): 3.7 (“sell”)
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Consensus recommendations

As of July 20, 2017, 31 analysts have given recommendations on Diamond Offshore. At the beginning of 2017, 35 analysts were covering the stock. Of these 31 analysts, only one gave the stock a “strong buy,” two gave it “buys,” 20 gave it “holds,” seven gave it “sells,” and one gave it a “strong sell” recommendation.

Target price

The stock has a 12-month consensus target price of $13.67. Compared to its market price of $11.84 on July 20, 2017, the stock has a potential upside of 15.5%.


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