Ahead Of The Bell: Offshore Drillers Upgraded

NEW YORK (AP) — After a long dry spell of global oil production under-investment, drilling and service activity has risen, signaling a path of recovery for offshore drilling companies, said an analyst as he upgraded a number of oil services stocks.

Deutsche Bank analyst Mike Urban said that among companies in the sector, he expects those focused on oil drilling, as opposed to gas drilling, will lead the sector. Urban also prefers offshore drillers, particularly shallow water drillers, to land drillers.

Urban upgraded Ensco International Inc., Rowan Companies Inc. and Noble Corp. to "Buy" from "Hold," but downgraded Diamond Offshore Drilling to "Hold." ...