Duncan Williams Upgrades Hercules Offshore (HERO) to Strong Buy; Acquires Seahawk
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Price: $7.38 -5.26%
Rating Summary:
9 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Rating Summary:
9 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Trade HERO Now!
Duncan Williams upgraded Hercules Offshore (NASDAQ: HERO) from Buy to Strong Buy. PT increased from $4.50 to $6.
Duncan analyst says, "Hercules has signed an agreement to buy the assets of Seahawk Drilling, (NASDAQ: HAWK) (not rated) for approximately 22.3 million shares plus a cash consideration of $25 million.We believe this acquisition reduces one competitor from the market, leads to higher dayrates sooner, leads to higher utilization sooner, and should help HERO to survive. HERO, as part of acquisition, is planning to renegotiate its bank covenants, which should remove a risk to the stock going forward as its bankers get more assets for coverage of the loans...We believe this news is positive for the stock and puts the company closer to becoming profitable in the future."
For more ratings news on Hercules Offshore click here and for the rating history of Hercules Offshore click here.
Shares of Hercules Offshore closed at $3.62 yesterday, with a 52 week range of $2.05-$4.86.
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Duncan analyst says, "Hercules has signed an agreement to buy the assets of Seahawk Drilling, (NASDAQ: HAWK) (not rated) for approximately 22.3 million shares plus a cash consideration of $25 million.We believe this acquisition reduces one competitor from the market, leads to higher dayrates sooner, leads to higher utilization sooner, and should help HERO to survive. HERO, as part of acquisition, is planning to renegotiate its bank covenants, which should remove a risk to the stock going forward as its bankers get more assets for coverage of the loans...We believe this news is positive for the stock and puts the company closer to becoming profitable in the future."
For more ratings news on Hercules Offshore click here and for the rating history of Hercules Offshore click here.
Shares of Hercules Offshore closed at $3.62 yesterday, with a 52 week range of $2.05-$4.86.
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