In a research report released on Tuesday, Deutsche Bank analyst Mike Urban reiterated a Hold rating on SeaDrill Ltd (NYSE:SDRL) with a $14 price target, after hosting a meeting the company’s management. Shares of SeaDrill closed today at $10.80, up $0.03 or 0.28%.
Urban noted, “We recently hosted meetings with SDRL and came away more confident in the long-term outlook. Although the market is clearly concerned about leverage, SDRL did a good job of laying out a clear path toward long-term viability/ solvency without the need to issue equity. Liquidity needs are relatively modest for this year and next and management is cultivating a number of longer-term options under a range of scenarios including a prolonged downturn with little/ no access to capital markets.”
Bottom line: “While we see long -term value (as implied by our target price), the bleak outlook for offshore drilling and limited near-term catalysts lead us to maintain our HOLD rating.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mike Urban has a total average return of -2.6% and a 51.4% success rate. Urban is ranked #3146 out of 3574 analysts.
Out of the 15 analysts polled by TipRanks, 3 rate SeaDrill stock a Buy, 6 rate the stock a Hold and 6 recommend a Sell. With a return potential of 127%, the stock’s 12-month consensus target price stands at $24.52.