Goldman Sachs Sees Gold in Offshore Drillers (DO, PDE, RIG)

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Goldman Sachs has said enough is enough in oil drillers.  The firm is suggesting that investors take advantage of recent weakness seen in the offshore oil drillers.

Its two Buy-rated picks in the call were Diamond Offshore (NYSE: DO) with some 23% upside to its price targets and Pride International (NYSE: PDE) with about 20% upside to its price targets.

Goldman Sachs even noted Transocean (NYSE: RIG) with 22% upside to its target, although Goldman Sachs only has a neutral rating on that name.

This huge discovery in Brazil is noted as part of the reason for day rates rising, although this now notes a record $639,000/day rate.

Jon C. Ogg
February 19, 2008