Opinions
The Panic-Proof Portfolio (Stockchase Research)
Valaris Limited
VAL-N
TOP PICK
Jan 16, 2025
$48.480
Stock price when the opinion was issued
oil
gas
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TOP PICK
Stockchase Research Editor: Michael O'Reilly
The largest offshore oil and gas driller, operating 53 rigs worldwide. They beat 2nd quarter guidance as drilling contracts have extended longer -- they now hold over $4 billion in contract backlogs. We like that it trades at 5x earnings, under 2x book and supports a ROE of 59%. We recommend setting a stop-loss at $40, looking to achieve $69 -- upside potential of 27%. Yield 0%
(Analysts’ price target is $87.45)
oil
gas
PAST TOP PICK
(A Top Pick Jan 16/25, Down 17.5%)Stockchase Research Editor: Michael O’Reilly
Our PAST TOP PICK with VAL has triggered its stop at $40. To remain disciplined, we recommend covering the position at this time. When combined with our previous guidance, this will result in a net investment loss of 22%.
oil
gas
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We reiterate VAL, the world's largest offshore rig operator, as a TOP PICK. Its size makes it the go to offshore rig provider during periods of drilling revival -- which we think may be underway again. It trades at 10x earnings, 1.6x book and supports a robust 32% ROE. We continue to recommend a stop at $40, looking to achieve $60 -- upside potential of 23%. Yield 0%
(Analysts’ price target is $60.36)