Valaris downgraded to Neutral on 2025 EBITDA risk at Citi

Citi analyst Scott Gruber downgraded Valaris (VAL) to Neutral from Buy with a price target of $47, down from $58. The firm sews EBITDA achievement risk and a weaker 2025 free cash flow yield. Valaris will need to secure additional work in 2025 in order to achieve estimates, the analyst tells investors in a research note. With moderating utilization and elevated stacking costs, Citi sees downside risk to sixth generation floating rig rates in 2025.