Credit Suisse has picked up coverage of George Economou’s Ocean Rig with an outperform rating and touted the company as a possible seller in a sector widely expected to see further consolidation.
Analysts led by Greg Lewis placed a $32 per share target price on the company, which has exited Chapter 11 having restructured debt of $3.3bn.
“While we expect floater utilization to pick up in 2018, with some pricing to follow in 2019, Ocean Rig is well positioned to ride out an extended multiyear down-cycle if the recovery continues to push to the right,” Lewis said.
