Seadrill price target lowered to $65 from $70 at Stifel

Stifel lowered the firm’s price target on Seadrill to $65 from $70 and keeps a Buy rating on the shares. Near-term market conditions have softened in the offshore drilling space, the analyst tells investors in a research note, adding that while rig rates are holding reasonably well for now, there is likely to be white space on several rigs between contracts, which should impact cash flow in 2025. While next year is “choppy,” the firm believes Seadrill shares are still fundamentally undervalued relative to the meaningful step-up in cash flow the firm anticipates in 2026.