- Diamond Offshore (DO -2.8%) is downgraded to Sell from Neutral with a $38 target price, down from $61, at Global Hunter, which sees further rig deactivations and declining dayrates for less capable units in 2014.
- On top of DO's newbuilds entering into service under difficult market conditions, the firm forecasts reduced demand for deepwater capability and lower dayrates; operators will be forced to settle for shorter contracts.
- The firm also expects oversupply to lead to more well-to-well work, which will likely lead to contract gaps and lower earnings quality.
Diamond Offshore -2.8% as Global Hunter cuts shares to Sell
Feb 7 2014, 15:45 ET