Valaris initiated with an Underweight at JPMorgan

JPMorgan analyst Arun Jayaram initiated coverage of Valaris (VAL) with an Underweight rating and $40 price target The firm initiated overage of the offshore drillers with a cautious outlook citing oil price risk and softening demand trends. It expects this to place modest downward pressure on day rates. Despite an improvement in the overall market structure, leading-edge day rates for both floaters and jackups will trend down given lackluster demand trends, which could result in further white space challenges in 2025, the analyst tells investors in a research note.