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UPDATE: Morgan Stanley Initiates Seadrill Partners at Overweight on Attractive Fundamentals

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Morgan Stanley initiated coverage on Seadrill Partners (NYSE: SDLP) with an Overweight rating and a $31 price target.

Morgan Stanley noted, "We see a robust distribution growth story (19% DPU CAGR through 2015) as a result of parent's strong motivation to dropdown assets while SDLP is also levered to attractive market fundamentals for modern drilling rigs. … Global floater market fundamentals remain tight, while near-term demand that cannot be fulfilled will likely spillover into the longer term. The ultra-deepwater market is sold out through 2H13, and while we are not calling for dayrates to rise further, we are witnessing increasing customer demand for longer ultra-deepwater contract durations, a trend translating into greater cash flow and distribution visibility."

Seadrill Partners closed at $23.10 on Monday.

Latest Ratings for SDLP

DateFirmActionFromTo
Feb 2014ClarksonInitiates Coverage onOutperform
Feb 2014RBC CapitalInitiates Coverage onOutperform
Dec 2013Bank of AmericaInitiates Coverage onBuy

View More Analyst Ratings for SDLP
View the Latest Analyst Ratings

Posted-In: Morgan StanleyAnalyst Color Initiation Pre-Market Outlook Analyst Ratings

 

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