Credit Suisse Raises Price Target on Hercules Offshore (HERO) On Likely Covenant Relief

Credit Suisse raised their price target on Outperform-rated Hercules Offshore (NASDAQ: HERO) from $4.50 to $5.50, noting covenant relief is around the corner.

"Following the Seahawk asset purchase announcement, HERO management has shifted gears to pursue an amendment to its Credit Agreement. Given the modest improvement in credit metrics pro forma for the HAWK assets and consideration offered by HERO, we believe an amendment will likely be granted by lenders, which should support further near-term outperformance given reduced 'going concern' risk."

The firm revises 2011 and 2012 EPS estimates to ($0.70)/($0.40) from ($0.75)/($0.54).

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 $4.23 yesterday.

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