Valaris (Buy, TP: USD40.00) - All roads lead to 2027
With recent energy markets uncertainty and 2025–2026 rig market challenges remaining, idle time and gaps between contracts have left near-term earnings looking uninspiring. On the positive side, we see the company as well placed for several deepwater jobs with startup in 2026e, which could help build visibility for 2027. Hence, its cash flow story remains on the horizon, while we consider earnings improvements key to closing the NAV gap and for intrinsic values to crystallise. We reiterate our BUY, but have cut our target price to USD40 (52).
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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