Valaris Ltd experienced a price decline of 7.05%, hitting a 20-day low amid broader market weakness, with the Nasdaq-100 down 0.21% and the S&P 500 down 0.49%.
The decline comes despite Valaris securing a significant multi-year contract valued at approximately $300 million with Shell for the drillship VALARIS DS-8, expected to commence in Q1 2027. This contract reflects strong demand in the deepwater drilling market and demonstrates Shell's confidence in Valaris's capabilities, indicating a robust commercial strategy with over $2.5 billion in backlog year-to-date.
This contract not only reinforces Valaris's market position but also highlights the company's potential for sustained growth in the offshore drilling sector, despite the current market conditions.
Wall Street analysts forecast VAL stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for VAL is 56.50 USD with a low forecast of 49.00 USD and a high forecast of 65.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
Wall Street analysts forecast VAL stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for VAL is 56.50 USD with a low forecast of 49.00 USD and a high forecast of 65.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Buy
4 Hold
1 Sell
Hold
Current: 56.880
Low
49.00
Averages
56.50
High
65.00
Current: 56.880
Low
49.00
Averages
56.50
High
65.00
Citi
Neutral
downgrade
$62 -> $58
2025-12-22
Reason
Citi
Price Target
$62 -> $58
AI Analysis
2025-12-22
downgrade
Neutral
Reason
Citi lowered the firm's price target on Valaris to $58 from $62 and keeps a Neutral rating on the shares.
JPMorgan
Underweight
maintain
$38 -> $49
2025-12-10
Reason
JPMorgan
Price Target
$38 -> $49
2025-12-10
maintain
Underweight
Reason
JPMorgan raised the firm's price target on Valaris to $49 from $38 and keeps an Underweight rating on the shares. The firm adjusted ratings and targets in the oilfield services and equipment outlook as part of its 2026 outlook. JPMorgan retains a cautious sector stance citing upstream spending headwinds, but sees some "idiosyncratic growth opportunities." The analyst expects oilfield service stocks to play "second fiddle" to upstream companies and other energy sub-sectors due to a weakening spending picture. In a more challenging macro environment, companies that can demonstrate the most earnings resiliency and growth prospects are best positioned, the analyst tells investors in a research note.
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Citi
Scott Gruber
Neutral
maintain
$55 -> $62
2025-11-14
Reason
Citi
Scott Gruber
Price Target
$55 -> $62
2025-11-14
maintain
Neutral
Reason
Citi analyst Scott Gruber raised the firm's price target on Valaris to $62 from $55 and keeps a Neutral rating on the shares. The firm says the offshore drillers have become "noticeably more positive" on recent calls due to new contract signings. However, low crude prices could still delay any inflection and could weigh on rates, the analyst tells investors in a research note.
Barclays
Equal Weight
maintain
$43 -> $50
2025-11-05
Reason
Barclays
Price Target
$43 -> $50
2025-11-05
maintain
Equal Weight
Reason
Barclays raised the firm's price target on Valaris to $50 from $43 and keeps an Equal Weight rating on the shares following the Q3 report. The offshore drillers reiterated constructive outlooks for deepwater activity to recover meaningfully by late 2026 and into 2027, the analyst tells investors in a research note.
About VAL
Valaris Limited is an offshore contract drilling company, which is engaged in providing offshore contract drilling services to the international oil and gas industry with operations on the offshore market on approximately six continents. The Company operates a rig fleet of ultra-deepwater drill ships, semisubmersibles, and shallow water jackups. The Company operates through four segments: Floaters, which includes its drill ships and semisubmersible rigs; Jackups; ARO, and Other, which consists of management services on rigs owned by third parties and the activities associated with its arrangements with ARO. Its customers include many of the offshore exploration and production companies, including integrated energy companies, national oil companies, and independent operators. The Company owns approximately 52 rigs, including 13 drill ships, four dynamically positioned semisubmersible rigs, one moored semisubmersible rig, and 34 jackup rigs.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
