Market Overview

UPDATE: Wunderlich Initiates Coverage on Diamond Offshore Drilling Following Solid Returns

Related DO
Diamond Offshore Beats Q2 Earnings Estimates, Revenues Miss
Thursday Morning Earnings Reports
Energy Stocks Move Higher as Oil Spikes (Fox Business)

In a report published Wednesday, Wunderlich Securities analyst Todd P. Scholl initiated coverage on Diamond Offshore Drilling (NYSE: DO) 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.

Posted-In: Todd P. Scholl Wunderlich SecuritiesAnalyst Color Initiation Analyst Ratings

 

Most Popular

Related Articles (DO)

Around the Web, We're Loving...

Partner Network

Get Benzinga's News Delivered Free