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Why 7 Analysts Revised Rowan Companies’ Target Price

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Revision

After Rowan Companies (RDC) released its 4Q17 results, seven analysts revised the target price for the stock.

On March 5, 2018, UBS reduced Rowan Companies’ target price to $17 from $18. On March 2, 2018, Wells Fargo cut the target price to $12 from $16 and maintained a “market perform” rating. On March 1, 2018, Susquehanna reduced Rowan Companies’ target price to $13 from $16 and maintained a “hold” rating. On the same day, RBC reduced the target price to $14 from $16 and maintained a “sector perform” rating. Deutsche Bank cut the target price to $13 from $15 and maintained a “hold” rating. On February 28, 2018, Evercore reduced the target price to $14 from $16 and maintained an “outperform” rating.

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Consensus rating

According to Reuters, the consensus rating on a scale of one (strong buy) to five (strong sell) for Rowan Companies is 2.7, which means a “hold.” Below are the consensus ratings for other offshore drillers (OIH):

  • Noble (NE) – ~3.2, which means a “hold”
  • Transocean (RIG) – ~2.7, which means a “hold”
  • Ensco (ESV) – 2.7, which means a “hold”
  • Diamond Offshore (DO) – 3.5, which means a “hold”

Analysts’ recommendations

Rowan Companies is one of the most popular offshore drilling companies. Rowan Companies is covered by 33 analysts. Of the 33 analysts covering the stock, 19 analysts recommended a “hold,” two analysts recommended a “strong buy,” nine analysts recommended a “buy,” three analysts recommended a “sell,” and none of the analysts recommended a “strong sell.”

As of March 13, 2018, the consensus 12-month target price for Rowan Companies stock is 14.84, which implies a potential upside of 25.4% from its closing price of $11.83 on March 13, 2018.

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