Williams Financial Group Downgrades Diamond Offshore (DO) to Hold Following Q2 Earnings

July 26, 2013 7:54 AM EDT
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Price: $18.14 +1.00%

Rating Summary:
    7 Buy, 24 Hold, 7 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Williams Financial Group downgraded Diamond Offshore (NYSE: DO) from Buy to Hold with a price target of $77 following Q2 earnings.

Analyst Matt Beeby comments, "DO consistently beats EPS expectations – doing so again with 2Q OPEX lower than guidance. While 2Q EPS was solid, the fleet update lacked meaningful catalysts and suggested more downtime and survey expense in 2014, which is contrary to our thesis and significantly detrimental to 2014 EPS. Newbuild delays also impacted next year’s earnings, and the potential challenges of the midwater market remain a source of risk, in our opinion, as the company has generated fewer fixtures recently. Our upgrade a year ago yielded just 10% (w dividend) and we believe other drillers provide more near-term value and catalyst potential."

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 $69.29 yesterday.

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