Seadrill Limited: Strong Revenue Performance and Long-term Offshore Demand Justify Buy Rating

BWS Financial analyst Hamed Khorsand maintained a Buy rating on Seadrill Limited (SDRL – Research Report) today and set a price target of $80.00.

Hamed Khorsand has given his Buy rating due to a combination of factors influencing Seadrill Limited’s market position. The company reported first-quarter revenue that exceeded expectations, with $335 million compared to the anticipated $281 million. This positive variance was primarily due to higher-than-expected contract revenue, despite initial challenges with rigs being offline.
Moreover, while the current market environment shows limited new contracts, the demand for offshore oil rigs remains strong in the long term. The anticipation of a more stable global trade environment could also lead to increased contract activity for 2026 and 2027. These elements contribute to a favorable outlook for Seadrill Limited, supporting the Buy rating.

In another report released on May 5, BTIG also maintained a Buy rating on the stock with a $28.00 price target.