
Seadrill Ltd (SDRL) Stock Forecast & Price Target
Seadrill Ltd (SDRL) Analyst Ratings
Bulls say
Seadrill is expected to generate positive free cash flow this year and continue that trend in 2027, supported by a young fleet, strong balance sheet, and net leverage of about 0.7x, which leaves room for shareholder returns. Management is focused on buybacks and FCF improvement, while relocating rigs like West Carina from Brazil to Namibia shows discipline in pursuing new work as floater demand softens in the US Gulf and Brazil. With the market underappreciating higher day rates and a tighter supply backdrop into 2027, Seadrill’s valuation at roughly 5.5x 2027 consensus EBITDA appears discounted versus peers and leaves meaningful upside if contracts and utilization improve.
Bears say
Seadrill is facing a fundamentally weaker outlook because its shares do not appear to be pricing in a future of softer oil markets and more cautious E&P spending, which could reduce demand for offshore drilling services. Although second quarter revenue came in at $449 million versus an estimate of $388 million, the more important issue is that three rigs lack contracts heading into the second half of 2026, signaling potential utilization risk if work rolls off. With downside exposure to oil prices, global demand, capex, and oversupply, Seadrill’s earnings power and asset values could deteriorate despite a mostly full calendar of rigs in 2026.
This aggregate rating is based on analysts' research of Seadrill Ltd and is not a guaranteed prediction by Public.com or investment advice.
Seadrill Ltd (SDRL) Analyst Forecast & Price Prediction
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