Evercore Upgrades Borr Drilling to Outperform, Shares Rise 3%

Borr Drilling (NYSE:BORR) shares rose more than 3% pre-market today after Evercore ISI analysts upgraded the company from In Line to Outperform, setting a price target of $9.00.

The upgrade is based on improved revenue and cash flow visibility for Borr Drilling, supported by the strength of the ongoing offshore cycle. The analysts pointed out that the offshore drilling industry is benefiting from strong fundamentals, driven by a decade of underinvestment in the sector and a growing emphasis on energy security and reliability. Although near-term oil price volatility persists due to factors such as increased OPEC+ production, potential supply returns from Libya, weaker demand from China, and geopolitical uncertainties, the analysts believe that rising global oil and gas demand will spur continued offshore drilling activity.

Borr Drilling, a leading international jackup rig operator, boasts a fleet of 24 modern jackup rigs, including two newbuilds. With the youngest and most advanced fleet among its competitors—featuring an average fleet age of just seven years—Borr is well-positioned to command premium dayrates in key regions, further solidifying its growth prospects.