SharkNinja shares soar 11% as third quarter results crush expectations
Investing.com - BTIG has raised its price target on Valaris plc (NYSE:VAL) to $65.00 from $55.00 while maintaining a Buy rating on the offshore drilling contractor. The new target represents a 12.7% upside from the current price of $57.70. InvestingPro data shows Valaris is trading near its 52-week high of $58.39 but appears undervalued according to Fair Value calculations, with an impressive 78.6% price return over the past six months.
The global offshore floater activity has declined, with the working count averaging approximately 110 rigs, down about 2 rigs month-over-month and 11% lower compared to October 2024. This represents the lowest working floater count since April 2022, though it remains approximately 20% above the 2020 activity bottom.
The U.S. Gulf of Mexico experienced one fewer rig working, bringing the total to 17 floaters, the lowest level since 2021. Jackup activity, which had been trending higher through summer, dipped approximately 1% month-over-month and decreased about 4% year-over-year, with sequential declines in Asia-Pacific, the Middle East, and West Africa partially offset by gains in India and other regions.
Despite these activity declines, term contract pricing for seventh-generation drillships has remained firm in the $400,000-$430,000 range. BTIG attributes this pricing strength to steady floater contracts at approximately 135 rigs, expectations of increasing floater demand in the second half of 2026, and limited contract roll-offs for seventh-generation drillships in the coming quarters. Valaris has maintained strong financial performance with revenue growth of 18.8% in the last twelve months and attractive valuation metrics including a P/E ratio of 10.1 and EV/EBITDA of 6.0.
BTIG expects floater utilization to trend sideways over the next few quarters before strengthening in utilization and pricing during the second half of 2026. Valaris maintains a "GREAT" overall financial health score of 3.35 according to InvestingPro, which offers a comprehensive Pro Research Report on VAL and 1,400+ other US equities, transforming complex data into actionable intelligence for smarter investing decisions.
In other recent news, Valaris reported its Q3 2025 earnings with total revenues of $596 million, marking a decrease from the previous quarter’s $615 million. Despite this decline in revenue, Valaris secured a substantial contract with BP Offshore Egypt, valued at approximately $140 million. This significant contract highlights the company’s ongoing efforts to expand its business operations. Analysts have not provided any recent upgrades or downgrades for Valaris. These developments are part of the company’s latest activities. Valaris continues to focus on strengthening its market position through strategic contracts.
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