UPDATE: Diamond Offshore Drilling Upgraded At Morgan Stanley

In a report issued Thursday, Morgan Stanley upgraded its rating of

from Under-weight to Equal-weight with a target price of $57. Analyst Ole Slorer sees that a revision to negative earnings coupled with what he sees as significant upside optionality should have Diamond Offshore well placed for success. Also, Diamond Offshore's commitment to return capital to its investors is a strong positive. Diamond Offshore will open at $50.15 in Thursdays session.