Seadrill Profits Rise Like the Tide
NEW YORK (TheStreet) -- Seadrill
The stock closed Friday at $38. And despite having reported solid first-quarter results, these shares, are down 5% year to date, have barely moved. And with better-than-expected results already in hand from Transocean
In this video, energy analyst Richard Saintvilus explains why the stock is heading to $45. Saintvilus argues that Seadrill should benefit from a secular shift toward ultra-deepwater offshore drilling. That and its attractive fleet characteristics should spur improved fleet utilization going forward.
With Seadrill stock still down 5% year-to-date, I see this as a great buying opportunity. On the basis of long-term recovery in drilling demand and improved fleet characteristics, I project Seadrill's fair value to reach $45 by the end of the year.
At the time of publication, the author held no position in any of the stocks mentioned.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.