UPDATE: Williams Financial Group Upgrades Diamond Offshore form Hold to Buy

Williams Financial Group Upgraded Diamond Offshore (NYSE: DO) from a Hold to a Buy rating and increased its price target from $67 to $75.

William Financial Group commented, “We expected a solid number for 2Q, and DO exceeded those expectations with adjusted 2Q EPS of $1.09. Our reservation on DO was the near‐term challenges of recontracting and/or mobilizing idle equipment, as well as the longer‐term prospects of the fleet in Brazil, but a buoyant market has provided additional backlog for older rigs, and the company is developing a strategy to deal with contract rollover in a period where available floater capacity could be beneficial. The North Sea midwater market is thriving and the Onyx upgrade project appears successful to the extent we anticipate a near‐term decision for the next project. While challenges remain in Brazil, opportunities exist outside the country and may only require modest mobilization.”

Diamond Offshore closed at $15.02 on Thursday.