UPDATE: Pareto Securities Downgrades Seadrill to Hold, Reiterates $41 PT
In a report published Wednesday, Pareto Securities downgraded its rating on Seadrill (NYSE: SDRL) from Buy to Hold, and reiterated its $41.00 price target.
Pareto noted, “Seadrill continues to outperform its peers and also delivers the best contracts and results in the industry. Since our May 16th report the return is 15% including dividends. In July the company landed 19Y of UDW contracts for 3 rigs at 540-565'USD/day. DCF valuation assuming 600'USD/day for the UDW rigs until 2017 and then 500'USD/day we end up at NOK 240 per/share. Accordingly we change our rating from BUY to HOLD.
Seadrill closed on Tuesday at $42.00.
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