Jefferies Cuts Price Target to $21 After Meeting with Atwood Oceanics (ATW)

Jefferies reiterated a Buy rating on Atwood Oceanics (NYSE: ATW), and cut the price target to $21.00 (from $22.00), after meeting with management.

Analyst Eduardo Royes commented, "Meetings with management resulted in the following takeaways: (1) followon work prospects for most rigs are decent, with additional 'blend & extends' likely, (2) ATW is cautiously optimistic that it can execute a high yield deal in the next 6-12 months, which could materially boost '17-18 Balance Sheet flexibility, and (3) risk of a dividend reduction mounts (relatively inconsequential, in our view). Maintain Buy on backlog build potential and DCF valuation."

For an analyst ratings summary and ratings history on Atwood Oceanics click here. For more ratings news on Atwood Oceanics click here.

Shares of Atwood Oceanics closed at $17.12 yesterday.

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