Valaris initiated with a Buy at Citi

Citi analyst Nikhil Gupta initiated coverage of Valaris with a Buy rating and $85 price target. The offshore rig markets have witnessed a “swift recovery” with floater day-rates up three-times from the bottom, the analyst tells investors in a research note. The firm sees offshore oil and gas investment recovering back to the 2017-2018 levels, driven by activity levels in the Golden Triangle and in the Middle East. The higher activity should see demand for floating rigs rising 13% from the current levels, contends Citi. It believes companies with short-term contracts will benefit.