UPDATE: Credit Suisse Upgrades Seadrill Ltd. to Outperform, Raises PT
In a report published Friday, Credit Suisse Group upgraded its rating on Seadrill Ltd. (NYSE: SDRL) from Neutral to Outperform, and raised its price target from $45.00 to $48.00.
Credit Suisse noted, “The IPO of Seadrill Partners (SDLP) was transformational for SDRL as it provides a platform to deliver and/or further growth (newbuilds or acquisitions). Additionally, SDRL has Incentive Distribution Rights that should increase in value as SDRL drops down assets into its daughter (SDLP) - we estimate the value of the IDRs at $3-5/share. The success of SDLP (we expect great things) should drive the IDRs higher. We note this is the Fredriksen's Group's 3rd foray into a parent/daughter structure with the previous two in shipping being highly successful.”
Seadrill Ltd. closed on Thursday at $37.51.
Latest Ratings for SDRL
|Apr 2015||Wells Fargo||Downgrades||Market Perform||Underperform|
|Mar 2015||HSBC||Initiates Coverage on||Reduce|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.