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Benzinga
140 days

Valaris Needs More Cost-Cutting To Hit 2025 EBITDA Target: Analyst

1. J.P. Morgan analyst lowers VAL price forecast from $40 to $38. 2. Cost-cutting measures needed to meet 2025 EBITDA guidance of $530 million. 3. Potential demand slowdown and rig utilization gaps pose challenges for VAL. 4. Jayaram revises 2025 and 2026 EBITDA estimates down from prior projections. 5. VAL stock is currently up 4.08% at $40.86.

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FAQ

Why Bearish?

Analyst's underweight rating and reduced price forecast suggest negative outlook. Historical precedent shows repeated downgrades typically precede stock price declines.

How important is it?

Rating downgrades from significant analysts can sway investor confidence and stock performance.

Why Short Term?

Changes to estimates and ratings likely to influence investor sentiment quickly. Similar instances show immediate market reactions to such ratings.

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