Goldman Sachs Upgrades DryShips (DRYS) to Buy
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Price: $1.91 --0%
Rating Summary:
3 Buy, 6 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
3 Buy, 6 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade DRYS Now!
Goldman Sachs upgraded DryShips (NASDAQ: DRYS) from Neutral to Buy and raises their price target from $5.50 to $6.00 based on sum-of-the-parts framework.
The firm cited: "(1)an attractive valuation, based on our sum-of-the-parts and scenario analyses that highlight significant upside, as we think re-investment risk fears are overdone; (2) a likely underestimated drillship business, given an analysis of the top 330 oil and natural gas projects that points to a 38%, three-year CAGR in ultra deepwater drill ship demand while spare capacity remains constrained; and (3) sufficient liquidity, as the contracted fleet is fully funded while loan to value covenants present a manageable risk."
Despite the upgrade, Goldman lowered 2011E/2012E/2013E EBITDA to $747/$856/$874 mn from $753/$915/$925 mn.
For more ratings news on DryShips click here and for the rating history of DryShips click here.
Shares of DryShips closed at $3.83 yesterday, with a 52 week range of $3.28-$6.39.
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The firm cited: "(1)an attractive valuation, based on our sum-of-the-parts and scenario analyses that highlight significant upside, as we think re-investment risk fears are overdone; (2) a likely underestimated drillship business, given an analysis of the top 330 oil and natural gas projects that points to a 38%, three-year CAGR in ultra deepwater drill ship demand while spare capacity remains constrained; and (3) sufficient liquidity, as the contracted fleet is fully funded while loan to value covenants present a manageable risk."
Despite the upgrade, Goldman lowered 2011E/2012E/2013E EBITDA to $747/$856/$874 mn from $753/$915/$925 mn.
For more ratings news on DryShips click here and for the rating history of DryShips click here.
Shares of DryShips closed at $3.83 yesterday, with a 52 week range of $3.28-$6.39.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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