Borr Drilling: 3 Reasons To Look Beyond The Current Selloff
- Borr Drilling sold off on news that Aramco is suspending one of its rigs.
- The sell-off is perhaps amplified by the Oslo de-listing as certain institutional holders can no longer own the stock.
- Despite the worries, Borr Drilling is expected to generate 20% FCF yield next year under conservative assumptions.
- The replacement value of Borr Drilling's premium assets promises significant equity upside down the road.
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Investment thesis
Borr Drilling (NYSE:BORR) is undergoing a 50% drawdown from its highs last year:
The market sentiment to energy stocks has indeed been negative on lower oil prices, concerns over OPEC's spare capacity going into 2025 and more
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