[LEFT]1319 GMT [Dow Jones] HSBC downgrades Seadrill (SDRL) to neutral from overweight, as the company is “reaching maximum drill depth.” Says the risk/reward ratio is more balanced, although it increases the target price to NOK253 from NOK235, adding that consistent dividend yields limit the downside to the stock. Says rig rates and newbuild economics continue to improve and that a “presalt urgency” could spike the ultradeep markets in the short term, but that a newbuild wave is likely to kick off soon. Shares trade 1.1 % higher at NOK225.80.
[I]- Kjetil Malkenes Hovland Dow Jones & Company[/I][/LEFT]