NEW YORK (TheStreet) -- Diamond Offshore Drilling's (DO - Get Report)  price target was raised to $23 from $20 at Jefferies. The firm has a "hold" rating on the stock.

The new price target comes after the Houston-based offshore drilling contractor posted better-than-expected results for the 2016 first quarter yesterday.

Diamond Offshore reported earnings of 64 cents per share, trumping analysts' estimates of 27 cents per share. Revenue came in at $470.54 million, above expectations of $412.2 million.

"DO's efforts to put the pieces in place to be able to make the right fleet investment decisions for the long haul underscore this, and remind that DO could eventually be a way to play recovery in the group," Jefferies wrote in an analyst note.

However, an upturn in fundamentals is simply not palpable for now, the firm said.

"Further, relatively inexpensive valuation medium-term gives way to a more expensive normalized," Jefferies added.

Shares of Diamond Offshore are down 1.71% to $24.12 at the start of trading on Tuesday.

Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.

The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: DO