UPDATE: Citigroup Lowers PT on Diamond Offshore on Lowered Earnings Outlook
In a report published Monday, Citigroup analyst Robin Shoemaker reiterated a Neutral rating on Diamond Offshore (NYSE: DO), but lowered the price target from $75.00 to $68.00.
In the report, Citigroup noted, “DO beat expectations in 2Q13 on solid execution and prudent cost management. However, we have lowered our earnings outlook and our price target from $75 to $68 based on newly disclosed rig downtime planned for 2014 on the Ocean Confidence along with 5-year special surveys now scheduled on six floaters that will reduce utilization. Our revised estimate of $6.45 per share for 2014 still represents a significant improvement over the projected $4.77 per share in 2013, and reflects the first impact of the planned addition of five new ultra-deepwater rigs and two newly refurbished deepwater rigs to DO's fleet between 2014 and 2016.”
Diamond Offshore closed on Friday at $67.93.
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