Diamond Offshore -2.8% as Global Hunter cuts shares to Sell

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.

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Comments (4)
  • Maobama
    , contributor
    Comments (529) | Send Message
    Throw the flag! 15 yard penalty for piling-on.
    7 Feb 2014, 03:55 PM Reply Like
  • dieuwer
    , contributor
    Comments (2978) | Send Message
    What's it gonna be? About 45 mins ago DO reported increased day rates, but now Global Hunter claims declining day rates.
    Sorry, you cannot have it both ways.
    7 Feb 2014, 04:02 PM Reply Like
  • lbkbill
    , contributor
    Comments (15) | Send Message
    Is a downside hijacking of the stock with nefarious intent underway? Would love to see hand over heart, hope-to-die denial by downgraders.
    9 Feb 2014, 12:06 PM Reply Like
  • C,Ican
    , contributor
    Comments (8) | Send Message
    Global Hunter- hmmmmm- They better look at Xom -Bp -and Rds.a all reported lower volumes of supply. Thats means more drilling unless, you think the majors want their stock to go down -I dont think so-Diamond Offshore, has the Highest Credit rating of all drillers-D.O has the lowest Debt-you better get ready to buy all you can-You see what happened to R.I.G value-up Big-Diamond Offshore is going to drill down and stock up . Carl
    9 Feb 2014, 12:21 PM Reply Like
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