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VAL: Share Buybacks And New Contracts Are Expected To Drive Stability Ahead

Update shared on 01 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
16.1%
7D
-15.1%

Analysts have maintained their price target for Valaris at $55.10. They cite only minor adjustments to underlying forecasts, reflecting a slight uptick in profit margin and a marginally higher discount rate.

What's in the News

  • Valaris repurchased 1,500,000 shares between July 1, 2025 and September 30, 2025, representing 2.11% for $75 million. This brings total buybacks under the program announced in September 2022 to 6,774,186 shares, or 9.3%, at a cost of $403.39 million (Key Developments).
  • The company has secured a five-well contract with BP Exploration Delta Limited for its drillship VALARIS DS-12 in Egypt. The contract is expected to start in Q2 2026 and last approximately 350 days, with an estimated contract value of $140 million and three optional wells included (Key Developments).

Valuation Changes

  • Consensus Analyst Price Target remains unchanged at $55.10.
  • Discount Rate has risen slightly, increasing from 7.51% to 7.53%.
  • Revenue Growth estimate has declined modestly, moving from 0.56% to 0.54%.
  • Net Profit Margin has increased marginally, rising from 19.27% to 19.28%.
  • Future P/E ratio is essentially stable, changing from 9.40x to 9.41x.

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Disclaimer

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