UPDATE: Citigroup Initiates Seadrill Partners at Buy on Cash Flow, Fleet Quality
Citigroup raised its rating on Seadrill Partners (NYSE: SDLP) with a Buy rating and a $30 price target
Citigroup noted, "SDLP already trades at a hefty valuation premium due to its: (1) fleet comprised solely of new and technologically advanced rigs, (2) attractive cash flow payout structure, and (3) lowrisk path to growth through the dropdown of additional rigs from parent Seadrill Limited. We initiate with a Buy rating and $30 price target based on applying a 5.3% yield to our cash distribution estimate of $1.59 per unit (beginning 12 months forward from 3Q12)."
Seadrill Partners closed at $23.10 on Monday.
Latest Ratings for SDLP
|Sep 2016||Wells Fargo||Downgrades||Market Perform||Underperform|
|Jul 2016||Morgan Stanley||Downgrades||Overweight||Equal-Weight|
|Dec 2015||Seaport Global||Downgrades||Buy||Neutral|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.