Wells Fargo Upgrades Hercules Offshore (HERO) to 'Market Perform' on Valuation--Raising Ests

Wells Fargo upgraded Hercules Offshore (NASDAQ: HERO) to Market Perform with a price target range of $4.25-$4.75.

Wells analyst says, "We are raising our 2011E EBITDA/EPS to $138MM/-$0.58, respectively, from $112MM/-$0.73, to incorporate the better-than-estimated Q2 and lower GOM operating costs. We are similarly raising our 2012E EBITDA/EPS to $172MM/- $0.45 from $141MM/-$0.60. We are raising our valuation range to $4.25-4.75, up from $4.00-4.50, driven mostly by the company's significant success in driving down GOM drilling operations costs, and we are raising our rating to Market Perform based on the stock's recently reduced valuation."

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 $4.70 yesterday.

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