|Bid||4.70 x 200|
|Ask||5.30 x 200|
|Day's range||4.68 - 4.87|
|52-week range||3.14 - 5.80|
|PE ratio (TTM)||N/A|
|Forward dividend & yield||N/A (N/A)|
|1y target est||N/A|
Apr.20 -- Noble Group Ltd. shareholder Goldilocks Investment Co. stepped up its opposition to the commodity trader’s debt-for-equity restructuring, calling for a full overhaul of the board and fresh talks with creditors to agree on an alternative rescue proposal. Bloomberg's James Poole reports on "Bloomberg Markets."
Of the 32 analysts covering Ensco (ESV), 44% recommend a “buy” or equivalent for the stock. Among the top offshore drilling stocks (IYE), Ensco and Transocean (RIG) have the most “buy” recommendations. About 41% of analysts are recommending a “hold” for Ensco.
In this part, we’ll discuss analysts’ recommendations and target price revisions for offshore drilling (IYE) stocks in week 15 (week ending April 13, 2018).
In week 15, the week ending April 13, 2018, all of the offshore drilling stocks rose. Transocean was the best performer among its peers, while Seadrill Partners rose the least in week 15.
On April 6–13, 2018, upstream stock California Resources (CRC) was the top gainer on our list of energy stocks. During this period, the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose 7.8%—the second-largest gainer among the energy subsector ETFs discussed in the previous part.
In the week ending April 6, 2018, HSBC revised the target prices and recommendations for two offshore drillers (OIH). In this part, we’ll discuss the revisions and analysts’ consensus recommendations. HSBC reduced the target price for Rowan Companies (RDC) to $15.33 from $17.9.
In week 14, the week ending April 6, 2018, Rowan Companies was the best performer among offshore drilling stocks. The company secured a new contract. As a result, Rowan Companies’ stock price increased last week.
The US offshore rig count was 12 in the week ending March 29, 2018. The rig count dropped by one from the previous week. The rig count is still down by ten rigs year-over-year. The rig count is a key demand indicator for the offshore drilling industry. For Rowan Companies (RDC), 22% of its total revenue comes from the US Gulf of Mexico.
In February 2018, one drilling permit was issued in the Gulf of Mexico. No drilling permits were issued in January. For the first two months of 2018, one shallow-water drilling permit was issued—compared to three permits issued in the same period in 2017.
Energy was one of the worst-performing sectors to start the year, but that hasn't kept analysts from being optimistic about a recovery. HSBC's Abhishek Kumar's glasses aren't that rosy, but he is getting more upbeat on oilfield-services companies. Oil majors are tiptoeing back into the market and hiring rigs after a "distinctly quiet" 2017 for new contract activity.
Previously in this series, we discussed offshore drilling (OIH) companies’ 4Q17 EBITDA (earnings before interest, tax, depreciation, and amortization). In this part, we’ll discuss their free cash flow profiles. The “free cash flow” is operating cash flows minus capital expenditure.
Just like other offshore drillers (OIH), Noble (NE) hasn’t had a good run this year and has posted a negative YTD return. Transocean (RIG) has fallen 8.4%, while Ensco (ESV) and Diamond Offshore (DO) both fell more than 17% from the start of the year. Rowan Companies (RDC) has a negative YTD return of 23%.
Of the 32 analysts covering Ensco (ESV), more than 43% recommend a “buy” or some equivalent. In 2017, many analysts turned bullish on Ensco. While it’s important to look at analyst ratings, recent changes to recommendations and target prices provide insight into the latest changes in the market sentiment for a stock.