Borr Drilling: Recent Pullback Provides Buying Opportunity (Rating Upgrade)

Henrik AlexInvesting GroupFollow5ShareSavePlay(8min)CommentsSummarySince my last public update on leading shallow water driller Borr Drilling, shares have rallied by more than 200% at their peak.BORR has taken advantage of improved sentiment by expanding its fleet and refinancing legacy convertible debt at favorable terms.In recent quarters, the jackup market has been showing signs of life, with tendering activity increasing to new multi-year highs.A timely resolution of the Iran conflict will be needed for tendering activity in the region to translate into material near-term contract awards.While 2026 will be nothing to write home about, increased fleet utilization and rising day rates should result in substantially increased profitability over the next couple of years. Upgrading to 'Buy' and increasing price target to $6.50.Looking for a helping hand in the market? Members of Value Investor's Edge get exclusive ideas and guidance to navigate any climate. Learn More »AvigatorPhotographer/iStock via Getty Images Note: I have covered Borr Drilling Limited, or "Borr Drilling" (BORR), previously, so investors should view this as an update to my earlier articles on the company. Please note also that Borr Drilling is part ofThis article was written byHenrik Alex20.97K FollowersFollowI am mostly a trader engaging in both long and short bets intraday and occasionally over the short- to medium term. My historical focus has been mostly on tech stocks but over the past couple of years I have also started broad coverage of the offshore drilling and supply industry as well as the shipping industry in general (tankers, containers, drybulk). In addition, I am having a close eye on the still nascent fuel cell industry.I am located in Germany and have worked quite some time as an auditor for PricewaterhouseCoopers before becoming a daytrader almost 20 years ago. During this time, I managed to successfully maneuver the burst of the dotcom bubble and the aftermath of the world trade center attacks as well as the subprime crisis.Despite not being a native speaker, I always try to deliver high quality research to followers and the entire Seeking Alpha community.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.