Deutsche Bank Upgrades Hercules Offshore (HERO) to Hold

Deutsche Bank upgraded Hercules Offshore (NASDAQ: HERO) from Sell to Hold with a price target of $7.00. The change follows the company's restructuring.

Analyst Mike Urban said, "Following HERO's emergence from Ch. 11, we are upgrading to HOLD from SELL and increasing our target price to $7 from $0. Our target price assumes a new 20MM share count. All of the company’s existing debt will be terminated and HERO will have access to a new $450MM senior secured credit facility to go along with the roughly $130MM of cash currently on hand. $200MM of the term proceeds will be held in escrow and used as final delivery payment for the Hercules Highlander. While the company should now be viable for quite some time and the near-term existential threat has passed, the global shallow water market remains extremely challenging, hence the neutral view."

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 $14.20 yesterday.

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