Valaris (Buy, TP: USD70.00) - Patience remains key
With deepwater uncertainty and idle time extending well into 2026, consensus looks (far) too optimistic to us (we are 21% below on both 2025–2026e EBITDA). Jackup market headwinds have also made us lower our dayrate expectations, and we see a risk of fewer of its rigs working in Saudi Arabia in 2025–2026. With the cash-flow story still on the horizon, we believe focus should be on 2026 and beyond, helping to close the NAV gap and intrinsic value to crystallise. We reiterate our BUY but have cut our target price to USD70 (85).
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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