Seadrill Ltd (NYSE:SDRL) shares are up nearly 3% to $2.54 in pre-market trading Friday, gaining support from the climbing crude oil prices. According to Reuters, oil has climbed further above $52 a barrel, supported by a drop in U.S. fuel inventories.
However, oil had posted declines in the past two sessions after recent data pointed to an increase in monthly production from the Organization of the Petroleum Exporting Countries, creating doubts that the group will be able to cut member output to its proposed target of 32.5 million and 33 million barrels a day.
On the ratings front, Seadrill has been the subject of a number of recent research reports. In a report issued on September 23, Credit Suisse analyst Gregory Lewis reiterated a Sell rating on SDRL, with a price target of $1.00, which represents a potential downside of 59.5% from where the stock is currently trading. Separately, on September 6, Canaccord Genuity’s Alex Brooks also reiterated a Sell rating on the stock .
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Gregory Lewis and Alex Brooks have a total average return of -4.5% and 44.1% respectively. Lewis has a success rate of 45% and is ranked #3711 out of 4182 analysts, while Brooks has a success rate of 95% and is ranked #120.
Overall, 3 research analysts have rated the stock with a Sell rating, one research analyst has assigned a Hold rating and . When considering if perhaps the stock is under or overvalued, the average price target is $7.50 which is 204% above where the stock closed yesterday.
Seadrill Ltd. is an offshore drilling contractor providing offshore drilling services to the oil and gas industry. Its primary business is the ownership and operation of drillships, semi-submersible rigs, jack-up rigs, tender rigs for operations in shallow, mid, deep, and ultra deep-water areas, and in benign and harsh environments. It operates through the following segments: Floaters, Jack-up Rigs, and Tender Rigs. The Floaters segment offer services encompassing drilling, completion, and maintenance of offshore exploration and production wells. The Jack-up Rigs segment offers drilling services, completion and maintenance of offshore exploration and production wells. The drilling contracts relate to jack-up rigs for operations in harsh and benign environments. The Tender Rigs segment operates self-erecting tender barges and semi-submersible tender rigs, which are used for production drilling and well maintenance in Southeast Asia and West Africa.