Duncan Williams Downgrades Rowan Companies (RDC) to Buy; Sell Land Fleet

Duncan Williams downgraded Rowan Companies (NYSE: RDC) from Strong Buy to Buy. PT cut from $50.25 to $43.50.

Duncan analyst says, "Ensign Energy, a Canadian based oilfield service provider, announced it would buy Rowan's land rig fleet for $510 million this morning. Rowan operates a 30 rig fleet with 18 rig in Texas, eight in Louisiana, and one each in Alaska and Alabama. The $510 million sales price is equivalent to $4 per share for Rowan and was on the lower end of our expectations for a sale price. Rowan had previously sold its Letourneau manufacturing division and used the proceeds to order two drillships scheduled for delivery in 2013 and 2014...The changes lead our earnings estimates for 2011 lower to $1.80 per share from $1.90 per share and our 2012 earnings lower to $2.90 per share from $3.35 per share."

For more ratings news on Rowan Companies click here and for the rating history of Rowan Companies click here.

Shares of Rowan Companies closed at $37.56 yesterday.

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