Citi Upgrades PT on Seadrill Limited from $36 to $40, Maintains Buy Rating on the Stock

Seadrill Limited (NYSE:SDRL) is one of the 14 Best Small Cap Stocks to Buy Right Now. On August 28, Citi upgraded the price target on Seadrill Limited (NYSE:SDRL) from $36 to $40, maintaining its Buy rating on the stock.

Scott Gruber from Citi raised the price target on SDRL, citing the increase to Seadrill’s FY2026 estimates. Wall Street expects Seadrill’s FY2026 revenue to be around $1.37 billion, while earnings per share are projected at $1.14, compared to the FY2025 projection of $0.22 per share. On August 6, the company posted Q2 FY2025 results, posting $377 million in total revenue, exceeding the top end of the consensus and increasing $42 million from last quarter.

The company’s West Vela continued robust operating performance, and the Sevan Louisiana contract award expanded its customer base. In line with these developments, on August 25, Seadrill’s joint venture with an affiliate of Sonangol, Sonadrill Holding Ltd., received two contracts. These contracts position the joint venture for long-term success.

As of September 5, Seadrill Limited’s (NYSE:SDRL) average price target of $34, based on analysts’ estimates, implies an upside of nearly 3.79% from current levels.

Seadrill Limited (NYSE:SDRL) offers offshore drilling services to the oil and gas industry worldwide.

While we acknowledge the potential of SDRL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.