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In-Depth Examination Of 4 Analyst Recommendations For Seadrill

In the preceding three months, 4 analysts have released ratings for Seadrill (NYSE:SDRL), presenting a wide array of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 4 0 0 0 0
Last 30D 1 0 0 0 0
1M Ago 1 0 0 0 0
2M Ago 1 0 0 0 0
3M Ago 1 0 0 0 0

Analysts have set 12-month price targets for Seadrill, revealing an average target of $65.5, a high estimate of $80.00, and a low estimate of $50.00. This current average has decreased by 2.24% from the previous average price target of $67.00.

Decoding Analyst Ratings: A Detailed Look

A comprehensive examination of how financial experts perceive Seadrill is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Nikhil Gupta Citigroup Raises Buy $50.00 $48.00
Hamed Khorsand BWS Financial Maintains Buy $80.00 $80.00
Hamed Khorsand BWS Financial Maintains Buy $80.00 $80.00
Nikhil Gupta Citigroup Lowers Buy $52.00 $60.00

Key Insights:

  • Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Seadrill. This offers insight into analysts' perspectives on the current state of the company.
  • Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Seadrill compared to the broader market.
  • Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Seadrill's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Seadrill analyst ratings.

Discovering Seadrill: A Closer Look

Seadrill Ltd is an offshore drilling contractor company. The company is engaged in providing offshore drilling services to the oil and gas industry. The primary business of the company is the ownership and operation of drillships, semi-submersible rigs, and jack-up rigs for operations in shallow to ultra-deepwater areas in both benign and harsh environments. The geographical segments of the company are the United States, Brazil, Angola, Norway, and others. The company derives maximum revenue from the United States.

Understanding the Numbers: Seadrill's Finances

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Negative Revenue Trend: Examining Seadrill's financials over 3 months reveals challenges. As of 30 September, 2024, the company experienced a decline of approximately -14.49% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Energy sector.

Net Margin: Seadrill's net margin is impressive, surpassing industry averages. With a net margin of 9.04%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Seadrill's ROE stands out, surpassing industry averages. With an impressive ROE of 1.07%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.76%, the company showcases effective utilization of assets.

Debt Management: Seadrill's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.21.

How Are Analyst Ratings Determined?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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