Wunderlich Securities Upgrades Hornbeck Offshore (HOS) to Buy, PT Raised to $55

Wunderlich Securities upgraded Hornbeck Offshore (NYSE: HOS) from Hold to Buy with a price target of $55.00 (from $47.00).

Analyst Todd P. Scholl said, "We have tweaked our 2014 EPS estimate to $3.09 from $2.97 and our 2015 EPS estimate to $4.57 from $4.41. After a period of weakness in the US Gulf of Mexico offshore support vessel market we believe the region is poised to improve in 2H14 as new rig deliveries drive demand that will absorb excess capacity. Our estimates remain cautious but we believe that in 2015 the company should begin generating $9+ in free cash flow per share. With the stock trading at 5x our 2015 EBITDA estimate which is below its historical mean of 7x and the peer group average of 6.5x we think there is an opportunity to grab strong growth at an attractive price."

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

Shares of Hornbeck Offshore closed at $40.76 yesterday.

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