Diamond Offshore Drilling The offshore oil and gas drilling company reported earlier this month fourth-quarter earnings of $188 million, or $1.36 a share, down from year-ago earnings of $242 million, or $1.74. "The company's recent announcement of an upgrade to one of its stacked midwater floaters (with the possibility for a second upgrade) should add to earnings power, but the need for a broader fleet recapitalization remains," Deutsche Bank analysts wrote in a Feb. 10 report. "The significant capital requirement associated with this process and the resultant uncertainty over the sustainability of the special dividend policy leads us to a HOLD rating." Shares of Diamond Offshore Drilling were upgraded to a buy from a hold by TheStreet Ratings. Diamond Offshore Drilling has a forward P/E of 12.82; the average for oil equipment and services companies is 13.82. For comparison, Helmerich & Payne ( HP) has a lower forward P/E of 11.16; Cameron International ( CAM) has a forward P/E of 12.85. Nineteen of the 36 analysts who cover Diamond Offshore Drilling rated it a hold. Eight analysts gave it a buy rating and nine considered it a sell. TheStreet Ratings gives Diamond Offshore Drilling a B- grade and a $73.91 price target. The stock closed Friday at $64.78 and has risen 17.23% year to date.