Wall Street analysts’ ratings
In this part of our series, we’ll compare Wall Street analysts’ consensus ratings for the offshore drilling companies we’ve been analyzing. We’ll also check out the 12-month price targets for offshore drilling (IYE) companies. These ratings and target returns are based on analysts’ views of the companies and the industry. Remember: views can change as outlooks change.
Most “buy” ratings
Transocean, Rowan Companies, and Ensco (ESV) are covered by 30 analysts each. For all three companies, 12 analysts (40%) have recommended a “buy” or equivalent.
Most “sell” ratings
Of the 29 analysts covering Diamond Offshore (DO), 14 (48%) have given the company a “sell” or equivalent rating. For Noble Corporation (NE), ten out of 31 analysts have given a “sell” or equivalent—that’s almost 32%.
Rowan Companies (RDC) has one of the highest “buy” ratings among peers. The company also has the highest potential return. It’s the only company among its peers that has a positive potential return. Analysts have given the company a consensus 12-month target price of $16.08, compared to its current price of $15.87, which implies a return potential of 1.32%.
Diamond Offshore Drilling (DO) has a consensus 12-month target price of $14.76, which implies a potential downside of 26.13%. This is the lowest potential return among the offshore drilling companies under review in this series.