Canaccord Genuity Maintains a 'Hold' on Diamond Offshore (DO); Minor Changes After Fleet Status Update
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Price: $13.99 --0%
Rating Summary:
8 Buy, 17 Hold, 14 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
8 Buy, 17 Hold, 14 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity maintains a 'Hold' on Diamond Offshore (NYSE: DO), PT $88.
Canaccord analyst, Scott Burk, said, "Diamond's June fleet status shows only one new contract and one extension, both with relatively short terms (> 1 year). We are trimming our 2011/12 EPS estimates slightly, to reflect the lower achieved rates on these rigs compared to prior rate assumptions. We continue to believe DO will struggle to grow earnings near term as most of its stacked rigs will likely remain inactive and upside rechartering opportunities are limited through 2012. We don’t expect much earnings growth until 2013/14 when its three newbuild drillships deliver. However, the company still generates more than enough cash flow to sustain its current healthy dividend."
For more ratings news on Diamond Offshore click here and for the rating history of Diamond Offshore click here.
Shares of Diamond Offshore closed at $67.84 yesterday.
Canaccord analyst, Scott Burk, said, "Diamond's June fleet status shows only one new contract and one extension, both with relatively short terms (> 1 year). We are trimming our 2011/12 EPS estimates slightly, to reflect the lower achieved rates on these rigs compared to prior rate assumptions. We continue to believe DO will struggle to grow earnings near term as most of its stacked rigs will likely remain inactive and upside rechartering opportunities are limited through 2012. We don’t expect much earnings growth until 2013/14 when its three newbuild drillships deliver. However, the company still generates more than enough cash flow to sustain its current healthy dividend."
For more ratings news on Diamond Offshore click here and for the rating history of Diamond Offshore click here.
Shares of Diamond Offshore closed at $67.84 yesterday.
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