Goldman Sachs Upgrades Seadrill Ltd. (SDRL) to Buy

Goldman Sachs upgraded Seadrill Ltd. (NYSE: SDRL) from Neutral to Buy with a price target of Nkr308 (from Nkr301).

"Seadrill has the highest quality deep water rig fleet in the industry, with a significant further new build program ongoing," the firm comments. "The drilling market continues to tighten, particularly at the high end, with strong utilisation and increasing day rates. The competitors in the industry are largely struggling with a legacy of older and less capable rigs in an operating environment that has become a lot tougher in terms of regulatory and environmental scrutiny after the Macondo oil spill in the Gulf of Mexico. The company has a dividend yield of 9%, significantly greater than peers, and this is sustainable in our view, given the strong outlook for the deep water drilling market."

For an analyst ratings summary and ratings history on Seadrill Ltd. click here. For more ratings news on Seadrill Ltd. click here.

Shares of Seadrill Ltd. closed at $41.21 yesterday.

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