Hamed Khorsand, an analyst from BWS Financial, maintained the Buy rating on Seadrill Limited (SDRL – Research Report). The associated price target remains the same with $80.00.
Hamed Khorsand has given his Buy rating due to a combination of factors including Seadrill Limited’s (SDRL) recent financial and operational performance, as well as strategic maneuvers in the market. One of the critical elements influencing this rating is the steady increase in day rates for offshore drilling, as evidenced by SDRL securing a significant contract for the West Capella. The company has also reported a new contract for the Sevan Louisiana, highlighting a proactive approach in securing contracts and optimizing asset utilization.
Additionally, Seadrill Limited’s strategic decision to sell three jack-up rigs and its joint venture stake for $338 million further solidifies the company’s strong financial position. The expansion of the stock repurchase program by $500 million, with active buybacks since mid-September 2023, reflects management’s confidence in the company’s value and its commitment to shareholder returns. Together, these actions and the company’s financial metrics, such as a healthy balance between cash and debt, contribute to the analyst’s positive outlook and Buy rating for SDRL.
In another report released today, Stifel Nicolaus also assigned a Buy rating to the stock with a $73.00 price target.
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Seadrill Limited (SDRL) Company Description:
Paratus Energy Services Ltd is engaged in providing offshore drilling related services.
