Barclays Maintains an 'Underweight' on Diamond Offshore (DO); Market Improving but Structural Challenges Persist

FREE Breaking News Alerts from StreetInsider.com!

DO Hot Sheet

Rating Summary:
9 Buy, 10 Hold, 2 Sell

Rating Trend:

Up

Today's Overall Ratings:
Up: 19 | Down: 16 | New: 82

Barclays maintains an 'Underweight' on Diamond Offshore (NYSE: DO) price target cut from $61 to $57.

Analyst, James C. West, said, "Deepwater dayrates are improving, and Diamond also continues to add substantial backlog to its mid-water fleet. The company is executing well and has done a good job in mitigating unplanned downtime. However, the bifurcation between older and newer equipment continues. As a result, some of the company's rigs are becoming disadvantaged. Diamond has taken steps toward high-grading its fleet; however, we believe these are so far insufficient to replace lost earnings power."

Barclays cuts FY12 EPS estimate to $3.85 from $4.90 FY13 to $5.05 from $5.55.

For an analyst ratings summary and ratings history on Diamond Offshore click here. For more ratings news on Diamond Offshore click here.

Shares of Diamond Offshore closed at $63.28 yesterday, with a 52 week range of $51.16-$81.19.

Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!