TD Newcrest Upgrades Precision Drilling (PDS) to Buy; Expands New Build Program by 16 Rigs (vs 12)
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Price: $91.69 +2.88%
Rating Summary:
11 Buy, 9 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
11 Buy, 9 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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TD Newcrest upgraded Precision Drilling (NYSE: PDS) from Hold to Buy. PT increased from C$16 to C$17.
TD analyst says, "Precision announced it will expand its 2011/12 capital program with an increase in its rig build program from 12 to 28 rigs servicing both the U.S. and Canada. Increased spending for the rigs will result in capex in 2011 of $790 million with carryover into 2012 of an additional $152 million. We have made minor changes to our forecast that reflect 1) announced rig builds, 2) modestly higher day rates reflecting the new builds; and 3) a slightly higher proportion of rigs under contract, which in the U.S. results in higher utilization. With unchanged target multiples our target increases to $17 and with the recent share price weakness we are increasing our rating."
For more ratings news on Precision Drilling click here and for the rating history of Precision Drilling click here.
Shares of Precision Drilling closed at $13.92 yesterday.
TD analyst says, "Precision announced it will expand its 2011/12 capital program with an increase in its rig build program from 12 to 28 rigs servicing both the U.S. and Canada. Increased spending for the rigs will result in capex in 2011 of $790 million with carryover into 2012 of an additional $152 million. We have made minor changes to our forecast that reflect 1) announced rig builds, 2) modestly higher day rates reflecting the new builds; and 3) a slightly higher proportion of rigs under contract, which in the U.S. results in higher utilization. With unchanged target multiples our target increases to $17 and with the recent share price weakness we are increasing our rating."
For more ratings news on Precision Drilling click here and for the rating history of Precision Drilling click here.
Shares of Precision Drilling closed at $13.92 yesterday.
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