RDC’s analyst recommendations
Of the 31 analysts covering Rowan (RDC), 39% recommend “buy” or some equivalent, 55% recommend “hold,” and 6% recommend “sell.” Among the top offshore drilling stocks (IYE), Rowan has the highest percentage of “hold” recommendations.
Analysts’ 12-month target price of $15.50 implies a 3.6% downside based on the stock’s May 24 market price of $16.07. Since the beginning of the year, two analysts have downgraded Rowan Companies, and two analysts have upgraded the stock:
- In January, Piper Jaffray downgraded RDC to “neutral” from “overweight,” and Barclays downgraded RDC to “underweight” from “equal weight.”
- In May, Bank of America Merrill Lynch upgraded the stock to “neutral” from “underperform,” and Wells Fargo upgraded Rowan Companies to “outperform” from “market perform.”
Target price revisions in May
- Wells Fargo raised RDC’s target price to $20 from $12.
- Bank of America Merrill raised RDC’s target price to $17 from $9.
- Credit Suisse raised RDC’s target price to $15 from $14.
- RBC raised RDC’s target price to $16 from $14.
On May 22, Rowan Companies announced that it had amended the agreement governing its existing revolving credit facility and entered a new agreement providing additional unsecured revolving credit. The new five-year facility will give Rowan a borrowing capacity of $955 million. To learn more about the company, read Market Realist’s Rowan Companies Reports Loss in 1Q18, Stock Falls.