Deutsche Bank Downgrades Pacific Drilling S.A. (PACD) to Hold

August 9, 2016 6:37 AM EDT
Get Alerts PACD Hot Sheet
Price: $3.65 +3.40%

Rating Summary:
    5 Buy, 10 Hold, 3 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 17 | Down: 27 | New: 7
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Deutsche Bank downgraded Pacific Drilling S.A. (NYSE: PACD) from Buy to Hold with a price target of $6.00 (from $10.00). Mike Urban thinks the company is running out of time.

"Although we remain believers in the long-term deepwater story and the type of premium assets that populate PACD's fleet, the recent oil retrenchment has pushed an already tenuous recovery out further. PACD has done a good job on costs and preserving liquidity but looming debt maturities and weak contract coverage with only one rig fixed past April 2017 increase the risk of a restructuring unfavorable to equity holders. Although some meaningful equity value may remain, it is difficult to quantify at this point which seems likely to serve as an overhang on the shares until a new capital structure is finalized," said Urban.

For an analyst ratings summary and ratings history on Pacific Drilling S.A. click here. For more ratings news on Pacific Drilling S.A. click here.

Shares of Pacific Drilling S.A. closed at $6.02 yesterday.

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