Jefferies Revises Target Prices for Diamond Offshore, Noble

In this article, we’ll discuss analysts’ target price revisions for offshore drilling companies in Week 8 of 2018 (ended February 23).

Jefferies revised its target prices for two offshore drillers. On February 21, 2018, it reduced the target price for Transocean (RIG) to $12 from 413 and maintained a “buy” rating on the stock. It also reduced the target price for Noble (NE), to $5 from $6, and maintained a “buy” rating. NE’s target price was also reduced by Wells Fargo to $4 from $5.

Many analysts revised their target prices for Diamond Offshore (DO):

• Credit Suisse reduced its target price to $14 from $15 and maintained a “neutral” rating.
• Evercore reduced its target price to $19 from $20 and maintained an “outperform” rating.
• RBC reduced its target price to $17 from $19.
• Wells Fargo reduced its target price to $17 from $18.
• Susquehanna reduced its target price to $15 from $17.
• Citigroup, Simmons, UBS, and Jefferies reduced its target price to $12, $9.35, $20, and $12, respectively.

Raymond James downgraded Diamond Offshore to “underperform” from “market perform,” and Jefferies reduced its target price to $14.

In Week 5, Goldman Sachs revised target prices for various offshore drillers upwards:

• Rowan Companies (RDC): to $15 from $11.50
• Diamond Offshore Drilling (DO): to $13.75 from $10
• Noble (NE): to $4.50 from $2.75
• Transocean (RIG): to $13.75 from $9
• Ensco (ESV): to $8.75 from $7