J.P. Morgan Maintains UW Rating on Diamond Offshore

J.P. Morgan is maintaining its Underweight rating on shares of Diamond Offshore DO. “We continue to rate Diamond Underweight with a year-end 2011 price target of $68,” J.P. Morgan writes. “Our price target assumes the shares trade roughly in line with our $71 DCF estimate. “Our price target reflects 14x our 2012 contract-free adjusted earnings estimate, which is above our adjusted price target multiple for the group of 12.5x. Diamond currently trades at 14.2x contract-free adjusted earnings compared to the group at 11.3x.” Diamond Offshore closed Wednesday at $66.65.