Diamond Offshore initiated with a Buy at BTIG

BTIG initiated coverage of Diamond Offshore with a Buy rating and $20 price target. The offshore drilling contractor, with nine owned rigs currently under contract, emerged from bankruptcy in April 2021 and “not surprisingly has a strong balance sheet,” the analyst tells investors. Diamond has about 75% contract coverage in 2024, as the firm assumes all priced options are exercised given that the market is that strong, and “bigger picture” the company’s strong balance sheet should provide opportunities to scale into the ongoing offshore up-cycle, the analyst added.