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RBC Revised Its Target Prices for Offshore Drillers Last Week

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RBC Capital’s outlook

In the previous articles, we saw updates about Seadrill (SDRL) and Transocean (RIG). In this article, we’ll take a look at RBC Capital’s revised target prices for three offshore drillers (IYE).

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Revised target prices

On December 21, 2017, RBC reduced its target price for Transocean to $11 from $13. Diamond Offshore Drilling’s (DO) target price was raised to $19 from $17. Noble Corporation’s (NE) target price was cut to $4.5 from $5.

Consensus recommendations

Approximately 29% of the analysts tracking Noble Corporation have recommended a “buy” or some equivalent on the stock as of December 22, 2017. Approximately 44% have recommended a “hold,” and 27% have recommended a “sell” or some equivalent. Analysts’ consensus target price for NE is $4.41 as of December 22. Currently, Noble is trading at $4.23, which implies a 4.3% return over the next 12 months at its current price.

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About 40% of the analysts tracking Transocean have recommended a “buy” or some equivalent on the stock as of December 22. Approximately 37% have recommended a “hold,” and 23% have recommended a “sell” or some equivalent. Analysts’ consensus target price for Transocean is $11.93 as of December 22. Currently, Transocean is trading at $10.36, which implies a 15.2% return over the next 12 months at its current price.

About 9% of the analysts covering Diamond Offshore have recommended a “buy” or some equivalent on the stock as of December 22. Approximately 56% have recommended a “hold,” and 35% have recommended a “sell” or some equivalent. Analysts’ consensus target price for the company is $13.83 as of December 22. Currently, DO is trading at $18.6, which implies a return of -25.6% over the next 12 months at its current price.

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