Analysts Have Conflicting Sentiments on These Materials Companies: Diamond Offshore Drilling (NYSE: DO) and Rio Tinto Plc (NYSE: RIO)

By Jason Carr

Analysts have been eager to weigh in on the Materials sector with new ratings on Diamond Offshore Drilling (NYSE: DO) and Rio Tinto Plc (NYSE: RIO).

Diamond Offshore Drilling (NYSE: DO)

In a report released today, Eduardo Royes from Jefferies reiterated a Sell rating on Diamond Offshore Drilling (NYSE: DO), with a price target of $12. The company’s shares closed yesterday at $14.21.

According to TipRanks.com, Royes is ranked 0 out of 5 stars with an average return of -12.9% and a 40.7% success rate. Royes covers the Basic Materials sector, focusing on stocks such as Cobalt International, Forum Energy Tech, and National-Oilwell.

Currently, the analyst consensus on Diamond Offshore Drilling is Moderate Sell and the average price target is $13.67, representing a -3.8% downside.

In a report issued on February 9, Raymond James also downgraded the stock to Sell.
Rio Tinto Plc (NYSE: RIO)

Jefferies analyst Chris LaFemina reiterated a Buy rating on Rio Tinto Plc (NYSE: RIO) today and set a price target of $69. The company’s shares closed yesterday at $58.04, close to its 52-week high of $58.20.

According to TipRanks.com, LaFemina is a 3-star analyst with an average return of 1.7% and a 56.5% success rate. LaFemina covers the Basic Materials sector, focusing on stocks such as Peabody Energy Corporation Comm, Newmont Mining Corporation, and Randgold Resources Limited.

Currently, the analyst consensus on Rio Tinto Plc is Moderate Buy and the average price target is $63.67, representing a 9.7% upside.

In a report released yesterday, Argus Research also maintained a Buy rating on the stock with a $61 price target.

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