Market Overview

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

Share:
Related SDLP
Mid-Afternoon Market Update: Crude Oil Drops Below $43; Linear Technology Shares Spike Higher
15 Biggest Mid-Day Losers For Tuesday

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
Jul 2016Morgan StanleyDowngradesOverweightEqual-weight
Dec 2015Seaport GlobalDowngradesBuyNeutral
Nov 2015OppenheimerDowngradesOutperformPerform

View More Analyst Ratings for SDLP
View the Latest Analyst Ratings

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

 

Related Articles (SDLP)

View Comments and Join the Discussion!