Global Hunter Lowers PT on Diamond Offshore Drilling to $68

Global Hunter is out with its report today on Diamond Offshore Drilling DO, lowering its PT from $71 to $68. In a note to clients, Global Hunter writes, "DO reported EPS of $1.92, in line with consensus expectations, but the stock reacted negatively to the prospects of more downtime for the company's older fleet going forward. The fleet status update highlighted nearly $1B backlog addition, but near-term utilization softness and rate uncertainty weighed on the stock. Furthermore, no clear use of cash to fund earnings growth is evident. We are trimming our price target to $68 from $71 and maintaining our Neutral rating." At the time of posting, shares of DO were trading pre-market at $70.27, up 0.09% from Thursday's close.