Jefferies Maintains Hold on Diamond Offshore Drilling (DO)

Jefferies is out with its report today on Diamond Offshore Drilling (NYSE: DO), maintaining Hold.In a note to clients, Jefferies writes, "Despite a solid EPS beat and increase in our 2011 EPS estimate, we maintain our neutral view on DO as we believe DO will be challenged to grow earnings over the next few years due to a soft dayrate environment for midwater and lower spec DW rigs."Jefferies has a $71 PT on DO.Shares of DO closed Thursday at $78.