In today’s briefing:
- SDRL: Attractive Value, PT to $62
- Morning Views Asia: PT Pertamina (Persero), Softbank Group
- Albemarle Corporation: Riding High On Growing Demand & Rising Lithium Prices! – Key Drivers
- Traders Remain Neutral Commodities // Copper Loses as China Falls Apart
- FMC Corporation: Decoding Their Strategy Amidst FX Headwinds and Declining Cash Flow! – Major Drivers
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SDRL: Attractive Value, PT to $62
- SDRL reporting second quarter results provided greater insight on the contribution of Aquadrill to SDRL’s financials and sets the course for how the business could benefit from current day rates
- SDRL has two drill ships set for contract expiration at year end and another two more vessels expected off contract by end of 2024, not including those with contract options
- Our new price target of $62 from $50 values SDRL in line with its peers even though SDRL is not levered
Morning Views Asia: PT Pertamina (Persero), Softbank Group
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.
Albemarle Corporation: Riding High On Growing Demand & Rising Lithium Prices! – Key Drivers
- Albemarle Corporation delivered a positive result and managed an all-around beat in the last quarter, with net sales and EBITDA up compared to last year.
- Based on the costs on the market at the time, their team has raised their energy storage projection for 2023.
- We give Albemarle Corporation a ‘Buy’ rating with a revised target price.
Traders Remain Neutral Commodities // Copper Loses as China Falls Apart
- Orange juice futures hit an all-time high last week as citrus crops all across the US have been hammered by a series of hurricanes and the spread of citrus greening, an incurable disease spread by insects.
- The vast majority of oranges produced in the US come from Florida, which has been hobbled by hurricanes and a cold snap, massively hampering supply.
- Such headwinds are responsible for the supply shortage in oranges, which has driven up prices that will eventually filter through to consumers.
FMC Corporation: Decoding Their Strategy Amidst FX Headwinds and Declining Cash Flow! – Major Drivers
- FMC Corporation delivered a disappointing set of results as the company could not meet the revenue and earnings expectations of Wall Street.
- The company presented several challenges, including FX headwinds, lower EBITDA margin, higher interest expenses, and a decline in free cash flow due to the impact of a channel inventory reset.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.