UPDATE: Global Hunter Securities Cuts Hercules Offshore (HERO) to Neutral Following January FSR

January 23, 2014 8:11 AM EST
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Price: $1.22 --0%

Rating Summary:
    5 Buy, 14 Hold, 5 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 14 | Down: 13 | New: 10
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(Updated - January 23, 2014 10:30 AM EST)

Global Hunter Securities downgraded Hercules Offshore (NASDAQ: HERO) from Buy to Neutral with a price target of $6.00 (from $12.00). The change follows the release of January's fleet status report.

Analyst Brian Uhlmer said, "Going into this FSR, we wanted to see: (1) meaningful contracts for the Discovery rigs; (2) a tick higher in GOM dayrates; and (3) PEMEX recontracting several of the legacy jackups set to roll in 2014, indicating to the market that its newbuild awards are not solely replacement rigs but rather incremental. Failure to see any of these as well as the lack of contracts for the Resilience and 203 hurts our confidence in this name and as a result we are downgrading the name to Neutral from Buy, based off a lower 3.5x EBITDA multiple to a $6 price target (reduced from $12 previously)."

For an analyst ratings summary and ratings history on Hercules Offshore click here. For more ratings news on Hercules Offshore click here.

Shares of Hercules Offshore closed at $5.75 yesterday.

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