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Re: Seadrill $20 price targetBut they also say oil needs to reach and stay above $65 for growth in the sector. DNB Markets has made a review of investment plans, guidance and cash flow among the largest global oil companies going forward. In conclusion, if the suppliers of services to the offshore industry are to experience growth in demand in the future, this will depend on the oil price rising further and remaining above $ 65 a year. barrel. - With the oil price at today's level, in our view, activity will only remain stable. The backdrop here is that, in parallel with more than doubling the oil price since 2016, the oil companies have changed their priorities. An increased share of the cash flow is now invested onshore, dividend and repurchase of shares is prioritized higher than before and debt repaid faster, writes DNB Markets in today's morning report. The picture is nuanced, and the brokerage house's recommendations within the sector are based on company-specific approaches. DNB Markets covers 26 companies in the rig and oil services sector. Within the rig, the number crushes see the greatest potential for Seadrill, with a purchase recommendation and a price target of $ 20 per share. share. Based on today's dollar exchange rate, this means a price target of around NOK 170. On Wednesday, the stock closed at NOK 32.62. In order for the price target to be met, the share must rise by as much as 421 per cent from the current level. Within subsea and seismic, DNB Markets sees the most potential in Aker Solutions and Polarcus, respectively, where the shares receive a price target of NOK 60 and NOK 1.50 respectively. Among the other players, the analysts believe that Archer and Kværner are best positioned. Here DNB Markets operates with a price target of seven kroner and 19 kroner, respectively. |
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