Valaris Ltd stock fell sharply on Tuesday morning, plummeting 5.04% in the pre-market session. This sell-off comes after Barclays lowered its price target on the offshore drilling contractor.
Barclays cut its price target on Valaris to $46 from $49, while maintaining an Equal-Weight rating. The investment bank cited updated estimates on the offshore drilling industry as the key reason behind the price target reduction.
"We have lowered our price target on Valaris to reflect a more conservative outlook for offshore drilling activity levels in the near-term," Barclays stated in its research note. However, the firm believes Valaris remains well-positioned to benefit from an eventual recovery in offshore spending.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.