Wells Fargo Upgrades Vantage Drilling Co (VTG) to Outperform; Valuation Call

Wells Fargo upgraded Vantage Drilling Co (NYSE: VTG) from Market Perform to Outperform, price target range $2.00-$2.20.

Wells analyst says, "Despite Slightly Negative Q2 Earnings, We Are Upgrading
VTG To Outperform On Valuation. We are basing our $2.00-2.20 valuation range on a 15-20% premium to estimated NAV. We have valued VTG's fleet at $1.7B, including $800MM for the Platinum Explorer Drillship (with 4.5 years left on a $585K/day contract), $180MM each for the company's four modern jackups, $100MM of equity value in their newbuild drillship Tungsten Explorer, and about $50MM of value from their construction and rig management operations...We believe current price of $1.54 is an attractive entry point, with underlying value of VTG's premium drilling equipment defending against significant further declines."

For more ratings news on Vantage Drilling Co click here and for the rating history of Vantage Drilling Co click here.

Shares of Vantage Drilling Co closed at $1.54 yesterday.

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