Added to YB: 2025-02-14
Pitch date: 2025-02-13
VAL [bullish]
Valaris Limited
+15.99%
current return
Author Info
Northeastern University Student Value Fund is the premier investment fund at Northeastern University. Visit their website.
Company Info
Valaris Limited, together with its subsidiaries, provides offshore contract drilling services in Brazil, the United Kingdom, U.
Market Cap
$3.9B
Pitch Price
$46.48
Price Target
67.96 (+26%)
Dividend
N/A
EV/EBITDA
5.66
P/E
9.97
EV/Sales
1.82
Sector
Energy Equipment and Services
Category
turnaround
Long: Valaris - Offshore contractor amid multi-year inflection at deep discount to replacement cost
VAL: Largest offshore fleet positioned for E&P shift. 13% CAGR through FY28, 50% EBITDA margin on contract repricing. Deep discount to $25B replacement cost & $4.1B backlog. Risks: day rates, oil prices, spills. Bull case: +180% EBITDA. $67.96 PT, 48.2% upside. Management prioritizing buybacks.
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