Seadrill Limited: Resilient Growth and Strategic Contracts Justify Buy Rating

Benchmark Co. analyst Kurt Hallead maintained a Buy rating on Seadrill Limited (SDRL – Research Report) today and set a price target of $52.00.

Kurt Hallead’s rating is based on a combination of factors that suggest a positive outlook for Seadrill Limited. Despite a 17% miss in the fourth quarter of 2024 EBITDA, the company has demonstrated resilience by adding $1 billion in contract backlog, which indicates strong future revenue potential.
Furthermore, Seadrill’s strategic commencement of contracts with major players like Petrobras and the continuation of existing contracts in key regions such as the U.S. Gulf bolster its operational stability. These developments, alongside the resumption of drilling activities and ongoing upgrades, position Seadrill favorably in the market, justifying the Buy rating.