Wells Fargo Upgrades Atwood Oceanics (ATW) to Outperform; Recovery Of Deepwater Pricing

Wells Fargo upgraded Atwood Oceanics (NYSE: ATW) from Market Perform to Outperform, price target range raised from $44-46 to $53-55.00.

Wells analyst says, "ATW’s estimated fleet value increased by 10% over our prior estimate ($275MM), benefitting from the upward revision of the company’s two newbuild UDW drillships (due in 2013 and 2014) and the accretion in fleet value from shipyard payments made during the past quarter. Our estimated NAV for ATW is now $39/share and our $53-$55 valuation represents a 30-35% premium to our estimate NAV as well as a 8.5x multiple of 2013 EBITDA. These valuation parameters represent a slight premium to the group due to ATW’s anticipated strong EBITDA, EPS and CFPS growth beyond 2013 when the new drillships exit the shipyard."

For an analyst ratings summary and ratings history on Atwood Oceanics click here. For more ratings news on Atwood Oceanics click here.

Shares of Atwood Oceanics closed at $47.60 yesterday.

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