UPDATE: Wunderlich Initiates Coverage on Seadrill Ltd. on Good Market Position

In a report published Wednesday, Wunderlich Securities analyst Todd P. Scholl initiated coverage on Seadrill Ltd. SDRL with a Buy rating and $54.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of Seadrill Limited (SDRL) with a Buy rating and a price target of $54, representing a 9x 2015 EV/EBITDA multiple. We believe Seadrill is well positioned to capitalize on the growth in offshore oil and gas spending. Seadrill's young, high-specification fleet should translate into lower maintenance costs, with fewer lost revenue days, and better customer acceptance than competitors with older fleets. Seadrill remains proactive in its approach to managing its portfolio and returning cash to shareholders highlighted by its M&A activity and adoption of an MLP as part of its capital structure. We believe continued improvement in dayrates for high-specification jack-ups and a reacceleration of rates for deep-water rigs will result in long-term outperformance.” Seadrill Ltd. closed on Tuesday at $47.02.