NEW YORK (TheStreet) -- Diamond Offshore Drilling (DO) shares are declining -0.95% to $46 on Monday after being downgraded to "sell" from "hold" by analysts at Deutsche Bank (DB), who also cut its price target nearly in half to $34 from $60.
The downgraded outlook is a result of analysts expectations of an industry wide oil rig fleet market recapitalization that could hurt companies' bottom lines.
Diamond Offshore Drilling reported a 52% decrease in its quarterly profit this quarter from the year ago period.
TheStreet Ratings team rates DIAMOND OFFSHRE DRILLING INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate DIAMOND OFFSHRE DRILLING INC (DO) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows: