Seeking Alpha

More losses for drillers as Wells Fargo piles on with downgrades

  • It's another down day for deepwater drillers after yesterday's drubbing, as Wells Fargo cuts its ratings and price targets for several big names, citing lower utilization and rates.
  • The firm downgrades and cuts earnings estimates for Ensco (ESV -2.3%), Diamond Offshore (DO -1.4%), Noble Corp. (NE -0.6%) and Transocean (RIG -2.1%) to Market Perform from Outperform.
  • Hercules Offshore (HERO +4.9%) is recovering a bit of yesterday's 15% loss, but the firm - which also cut shares to Market Perform - says it was spooked by HERO’s decision to abort the planned reactivation of a Gulf of Mexico jackup, showing management's concern about the strength and depth of HERO's most important cash-flow generating market.
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Comments (2)
  • Unclebob9
    , contributor
    Comments (30) | Send Message
    HERO in currently undervalued and oversold. Great entry opportunity for a 15% gain in one month!
    25 Jan 2014, 03:24 PM Reply Like
  • FinalAnalysis
    , contributor
    Comments (412) | Send Message
    Don't see SDRL in the downgrades...
    26 Jan 2014, 06:46 PM Reply Like
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