RBC Capital Downgrades Diamond Offshore (DO) to Underperform

RBC Capital analyst Kurt Hallead downgraded Diamond Offshore (NYSE: DO) from Sector Perform to Underperform with a price target of $0.25 (from $3.00).

The analyst comments "The fundamental outlook for the offshore drilling sector has radically changed with the Covid-19 economic impact and the collapse in oil price. Last week, DO missed an interest payment and hired legal and financial advisers to help determine capital structure alternatives. We believe the risk of a Chapter 11 bankruptcy filing has increased from a possibility to a probability."

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 $0.77 yesterday.

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