Offshre Drillers initiated at Citigroup

Citigroup initiates seven offshore drilling services providers: Diamond Offshore (DO), Ensco (ESV), Hercules Offshore (HERO), Noble Corp (NE), Pride Intl (PDE), Rowan Cos (RDC), and Transocean (RIG). The firm rates DO, NE, and RIG Buys saying the stocks are trading at valuations below their peer group average despite having superior assets and earnings power tied to the deepwater market. The firm also initiates ESV, HERO, PDE, and RDC with Holds