Seadrill's Plunge Deepens After Analysts Slash Target by 88%

Seadrill Ltd. plunged to the lowest since it emerged from bankruptcy less than year ago after Carnegie Investment Bank AB recommended selling the shares and slashed the price target by 88% amid mounting recovery concerns, Bloomberg News reported. The offshore rig market recovery is “not happening fast enough” for Seadrill, Carnegie said in a note to clients on Monday. The investment bank cut its recommendation from a buy and lowered the target price to 25 kroner from 210 kroner. The rig company controlled by billionaire John Fredriksen emerged from bankruptcy protection in July after a protracted battle with creditors. Despite raising new capital and cutting liabilities, Seadrill still has almost $6 billion of bank debt that was pushed down the road to enable it to wait for better times. Read more