Diamond Offshore raised at Morgan Stanley as floater availability has peaked

|About: Diamond Offshore Drilling Inc. (DO)|By:, SA News Editor

Diamond Offshore (DO +1%) is upgraded to Equal Weight from Underweight with a $57 price target, up from $47.50, at Morgan Stanley, which says earnings risk has largely played out and shares have an attractive yield.

The cycle is turning and floater availability has peaked, the firm believes, expecting trading to be driven increasingly by the reduction of floater availability through a pickup in fixtures rather than the confirmation of negative data points on dayrates.

Stanley sees negative sentiment on the offshore drillers group reversing to the extent that ballooning floater availability is absorbed from upcoming contract announcements.

Also: ATW +1.4%, HERO +1%, NE +0.8%, ESV +0.8%, RDC +0.5%, RIG +0.4%.