Loading...
Back to narrative

VAL: Long-Term Offshore Contracts Will Drive Stronger Outlook Ahead

Deepwater Demand And Tech Advancements Will Power Offshore Growth

VAL logo
VAL
AnalystHighTarget
Not Invested
Published 27 Apr 2025

Update shared on 15 Dec 2025

Fair value Increased 4.84%
Previous
n/a
n/a
AnalystHighTarget's Fair Value
n/a
Loading
1Y
16.1%
7D
-15.1%

Analysts have raised their price target on Valaris by 5 percent, from 62 dollars to 65 dollars. They cite a lower perceived risk profile and slightly stronger long term revenue growth expectations, despite modestly softer margin assumptions.

What's in the News

  • Won a multi-year contract with Shell offshore Brazil for drillship VALARIS DS-8, starting in the first quarter of 2027, with an estimated 800-day duration and a total contract value of about 300 million dollars (Key Developments).
  • Awarded a five-well contract with BP Exploration Delta Limited for drillship VALARIS DS-12 in Egypt, expected to begin in the second quarter of 2026, running about 350 days with an estimated value of 140 million dollars and three optional wells (Key Developments).
  • Completed a share repurchase program launched in September 2022, buying back 6,774,186 shares, or 9.3 percent of shares outstanding, for 403.39 million dollars, including 1,500,000 shares for 75 million dollars in the latest tranche (Key Developments).

Valuation Changes

  • The fair value estimate has risen slightly from 62 dollars to 65 dollars, implying modest upside versus the prior assessment.
  • The discount rate has fallen moderately from about 8.15 percent to about 7.56 percent, reflecting a lower perceived risk profile.
  • Revenue growth has increased from roughly 2.37 percent to about 3.13 percent, signaling slightly stronger long term growth expectations.
  • Net profit margin has declined from about 24.75 percent to about 22.56 percent, incorporating somewhat softer margin assumptions.
  • The future P/E has edged up from roughly 8.5x to about 8.8x, consistent with a modestly higher valuation multiple.

Have other thoughts on Valaris?

Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.

Create Narrative

Disclaimer

AnalystHighTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystHighTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystHighTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.