Barclays Maintains an 'Underweight' on Hercules Offshore (HERO); GOM Recovery Continues
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Price: $27.42 +0.40%
Rating Summary:
3 Buy, 8 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
3 Buy, 8 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Underweight' on Hercules Offshore (NASDAQ: HERO), PT $3.
Barclays analyst says, "The recovery in the GOM shallow water market continues and the recent acquisition of 20 rigs from Seahawk increases Hercules' leverage to the region. The acquisition also eliminates a primary competitor and should help to improve market pricing. While improved activity levels and the Seahawk takeover are clear positives, we still believe the commodity jackup market faces structural challenges due to the superior economics of shale plays and the better efficiencies of standard jackups."
"We are adjusting our 2011 estimated loss to $0.70 (from a loss of $0.60) and our 2012 estimated loss to $0.55 (from a loss of $0.50) due to lower international jackup utilization assumptions and a decreasing tax benefit, offsetting a moderate recovery in the GOM."
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 $5.88 yesterday.
Barclays analyst says, "The recovery in the GOM shallow water market continues and the recent acquisition of 20 rigs from Seahawk increases Hercules' leverage to the region. The acquisition also eliminates a primary competitor and should help to improve market pricing. While improved activity levels and the Seahawk takeover are clear positives, we still believe the commodity jackup market faces structural challenges due to the superior economics of shale plays and the better efficiencies of standard jackups."
"We are adjusting our 2011 estimated loss to $0.70 (from a loss of $0.60) and our 2012 estimated loss to $0.55 (from a loss of $0.50) due to lower international jackup utilization assumptions and a decreasing tax benefit, offsetting a moderate recovery in the GOM."
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 $5.88 yesterday.
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