UPDATE: Morgan Stanley Reiterates Overweight Rating, Lowers PT on Seadrill Ltd. on Dividend Uncertainty

In a report published Monday, Morgan Stanley analyst Ole Slorer reiterated an Overweight rating on

, but lowered the price target from $48.00 to $39.00. In the report, Morgan Stanley noted, “Dividend concerns have re-surfaced against the backdrop of sub-$100/bbl Brent, broad rig market weakness and uncertainty around SDRL's Rosneft deal. We still model for SDRL to maintain a $4/sh annual dividend but acknowledge growing risk of a dividend cut and lower our PT from $48 to $39.” Seadrill Ltd. closed on Friday at $30.87.