Valaris rated Buy with strong backlog and rising day rates, but EBITDA lags amid idle rigs and integration risks.

Valaris is rated Buy due to strong fundamentals and a $4.7 billion backlog supporting earnings growth through 2026-2027. Recent contract repricing has increased drillship day rates to $416k-$433k, though reported EBITDA remains weak because of idle rigs and utilization challenges. Transocean's $5.8 billion all-stock acquisition values Valaris at 14.1 times forward 2027 earnings, with successful integration and execution critical for future gains. Upside depends on backlog conversion and normalized utilization, while risks include execution delays and offshore market volatility.