Offshore Sector Update

More Contracts, A Completed Merger, And Positive Analyst Coverage As The Offshore Sector Rallies

Summary

• Stocks in the offshore sector have had a strong run in recent weeks with new contract announcements and positive analyst coverage of different companies across the sector.

• Transocean inked a couple new contracts with day rates in the mid-$400,000s, and received a new buy rating from Citi.

• Tidewater finished its bond offering and its Solstad Offshore acquisition, and received two upgrades with price targets of $75 and $90.

• Other stocks in the sector like Noble and Valaris have rallied as well on positive coverage.

• While the sector has rallied strongly in the last couple weeks, I will be watching for a pullback to add shares of Transocean and Tidewater. I also have Noble and Valaris on my watchlist and might add shares (or Valaris warrants) to my portfolio in coming weeks.

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Today’s post will be a quick update on the offshore sector and some of the news and analyst updates on the sector. One of my podcasts of the week covered the offshore sector, and news has been flowing for several companies in the sector. My main focus will be on Transocean RIG 0.00%↑ and Tidewater TDW 0.00%↑, but other companies in sector have been receiving positive coverage as well, including Noble Corporation NE 0.00%↑ and Valaris VAL 0.00%↑. Below is a link to my first post on offshore, which explains in detail why I’m bullish on the sector.