UPDATE: Wunderlich Securities Initiates Coverage on Diamond Offshore Drilling with Buy Rating, $90 PT Following Solid Returns

In a report published Wednesday, Wunderlich Securities analyst Todd P. Scholl initiated coverage on

with a Buy rating and $90.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of Diamond Offshore Drilling, Inc. (DO) with a Buy rating and a price target of $90, which represents a 6x 2015 EV/EBITDA multiple. We believe that among offshore drilling contractors, Diamond Offshore has consistently done one of the best jobs of investing in fleet renewal while returning cash to shareholders. This is evidenced by Diamond's ability to maintain one of the highest dividend yields among offshore drillers at 5% while at the same time executing its current new build program that includes four newbuild drillships, a harsh environment semi-submersible, and two upgraded semi-submersibles.” Diamond Offshore Drilling closed on Tuesday at $63.46.