Evercore ISI Cuts Price Target on North Atlantic Drilling Ltd. (NADL) Following Epsilon Terminaton
- Apple (AAPL) Tops Q4 EPS by 2c; Issues Solid Outlook
- Wall Street slips on earnings; Apple falls late after results
- Chipotle Mexican Grill (CMG) Posts Q3 EPS of $0.27; Comps Miss Views; Additional Stock Buyback Approved
- Pandora (P) Misses Q3 EPS by 1c, Q4 Revenue Guidance Falls Short
- After-Hours Movers 10/25: (OGXI) (AKAM) (VRTX) Higher; (EW) (NUVA) (CMG) (AAPL) Lower (more...)
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
Evercore ISI maintained a Sell rating on North Atlantic Drilling Ltd. (NYSE: NADL), and cut the price target to $2.00 (from $2.50), following the company's "notice of cancellation" from Statoil for the West Epsilon drilling contract. This marks the second NADL rig to be cancelled by Statoil this year.
Analyst James West commented, "NADL disclosed it received a "notice of cancellation" from Statoil for the West Epsilon drilling contract, making it the second NADL rig to be cancelled by Statoil thus far this year. The 380' harsh high spec jackup was previously contracted through December 2016, but will now be released in mid-October for a lump sum payment of ~$11 million. While NADL is being made whole for the cancelled contract and we had already forecasted the Epsilon to be off rate for most of 2017, we are concerned Statoil may also release the West Elara when it's contract ends in March. The 450' harsh high spec Elara is one of NADL's only two remaining contracted rigs. The unit is currently working in the Valemon field in the Norwegian Continental Shelf, where development drilling was previously scheduled to be complete in 2017. We note that jackup contract cancellations seems to have accelerated in recent weeks, accounting for three of four contracts cancelled this month to date. In contrast, only two jackup contracts were cancelled through August."
Shares of North Atlantic Drilling closed at $2.75 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Cynosure (CYNO) PT, Estimates Trimmed at Stifel Despite Solid Results
- UBS Raises Price Target on Greenhill & Co. (GHL) to $17; Reiterates Sell
- Visa (V) PT Trimmed to $93 at Stifel With Initial 2017 Guidance a Touch Light
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!