UPDATE: Credit Suisse Reiterates On Seadrill On Dividend Suspension

In a report published Monday, Credit Suisse analyst Gregory Lewis reiterated a Neutral rating on Seadrill Ltd (NYSE: SDRL), but lowered the price target from $20.00 to $15.00.

In the report, Credit Suisse noted, “With the suspension of the dividend, SDRL is now the only deepwater offshore driller not paying a dividend. It will not be alone for long. We are maintaining our Neutral rating – not much else bad can happen at this point, but are lowering our target price to $15. Our $15 target price is 6x our 2016 EBITDA estimate. While a discount to the peer average – we believe a discount is warranted given SDRL's above average leverage (~56% and rising) and no dividend.”

Seadrill closed on Friday at $12.32.