Jefferies Cuts Price Target on Rowan Cos. (RDC) to $18; Reiterates Buy

Jefferies maintained a Buy rating on Rowan Companies (NYSE: RDC), and cut the price target to $18.00 (from $21.00), following the company's 2Q earnings report.

Analyst Eduardo Royes commented, "Uncertainty was introduced by CIE on their call regarding their intentions for RDC's Reliance drillship added to an overall lackluster (though not surprising) jackup outlook as provided by RDC and uninspiring near-term cost guidance (although from a cashflow perspective, lower capex largely offsets the latter). We lower estimates and price target (PT) to $18 as a result, but FCF generation and valuation still skew favorably versus peers. Maintain Buy."

For an analyst ratings summary and ratings history on Rowan Companies click here. For more ratings news on Rowan Companies click here.

Shares of Rowan Companies closed at $14.00 yesterday.

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