BORR Stock Downgraded by SEB Equities Analyst | BORR Stock News

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Jun 17, 2025

SEB Equities analyst Kim Andre Uggedal has revised the recommendation for Borr Drilling (BORR, Financial), moving it from a Buy to a Hold status. The updated price target has been set at $1.90. This adjustment reflects the analyst's current assessment of the company's performance and market conditions.

Wall Street Analysts Forecast

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Based on the one-year price targets offered by 5 analysts, the average target price for Borr Drilling Ltd (BORR, Financial) is $2.76 with a high estimate of $4.00 and a low estimate of $2.20. The average target implies an upside of 23.77% from the current price of $2.23. More detailed estimate data can be found on the Borr Drilling Ltd (BORR) Forecast page.

Based on the consensus recommendation from 7 brokerage firms, Borr Drilling Ltd's (BORR, Financial) average brokerage recommendation is currently 1.6, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.

Based on GuruFocus estimates, the estimated GF Value for Borr Drilling Ltd (BORR, Financial) in one year is $8.15, suggesting a upside of 265.47% from the current price of $2.23. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Borr Drilling Ltd (BORR) Summary page.

BORR Key Business Developments

Release Date: May 22, 2025

  • Total Operating Revenue: $216.6 million, a decrease of $46.5 million compared to the fourth quarter.
  • Adjusted EBITDA: $96.1 million for the first quarter, a decrease of $40.6 million from the previous quarter.
  • Net Loss: $16.9 million, a decrease of $43.2 million compared to the net income in the fourth quarter.
  • Total Operating Expenses: $156.8 million, a decrease of $5.1 million compared to Q4.
  • Free Cash Position: $170 million at the end of Q1.
  • Total Available Liquidity: $320 million, including $150 million undrawn under the RCF facility.
  • Net Cash from Operating Activities: $138.7 million, including $120 million in settlements of outstanding receivables from Mexico.
  • Net Cash Used in Investing Activities: $25.1 million, primarily for activation and maintenance costs.
  • Net Cash Used in Financing Activities: $4.9 million, mainly due to cash distribution to shareholders.
  • Operating Rig Count: Increased to 22 from 16 in the first quarter.
  • Contract Backlog: Nine new contract commitments adding $221 million to the backlog.
  • 2025 Fleet Coverage: 79% at an average day rate of $147,000.
  • 2026 Fleet Coverage: Increased to 35%, up 12 percentage points since the last report.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Borr Drilling Ltd (BORR, Financial) reported strong operational performance with technical utilization at 99.2% and economic utilization at 97.9% for active rigs.
  • The company received industry recognition for safety, including awards from Qatar Energy and PTTEP.
  • Borr Drilling Ltd (BORR) secured nine new contract commitments, adding $221 million to its backlog at an average rate of $141,000 per day.
  • The company's liquidity position improved with the collection of approximately $120 million in outstanding receivables from Mexico and additional mobilization fees.
  • Borr Drilling Ltd (BORR) increased its operating rig count to 22, laying a foundation for stronger financial performance in upcoming quarters.

Negative Points

  • Total operating revenue declined by $46.5 million quarter over quarter, resulting in a decrease in adjusted EBITDA.
  • The company experienced temporary rig suspensions and mobilization issues, leading to only 16 out of 24 rigs working on average during the quarter.
  • Net loss for the first quarter was $16.9 million, a significant decrease compared to the net income in the previous quarter.
  • The board decided to suspend the dividend due to uncertain market conditions, aiming to reinforce the balance sheet.
  • Recent changes in trade policies and OPEC's decisions have introduced uncertainty and price volatility in commodity markets, impacting future activity levels.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.