Valaris downgraded to In Line from Outperform at Evercore ISI

Evercore ISI analyst Jason Bandel downgraded Valaris (VAL) to In Line from Outperform with a price target of $59, down from $87. The firm says oilfield services stocks have been hit with the “dual negatives” of a low growth North America contending with a “rapidly consolidating customer base and capital restraint internationally that has ended any semblance of a coordinated global upcycle for the industry.” This combines with “wobble” in second half of 2024 oil prices, the analyst tells investors in a research note. Evercore’s global exploration and production spending survey anticipates flat spending in 2025. It reduced 2025 estimates by 10% across the sector to reflect a more cautious spending outlook and downgraded eight names in the group.