Deutsche Bank Upgrades Hercules Offshore (HERO) to Buy, GOM Steadily Improving
Tweet
Share
E-mailGet Alerts HERO Hot Sheet
Price: $27.96 +3.33%
Rating Summary:
3 Buy, 8 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 8 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
Deutsche Bank upgraded Hercules Offshore (NASDAQ: HERO) from Hold to Buy with a price target of $8.00 (from $4.00).
The firm comments, "We are making adjustments to subsequent quarters/years to reflect the most recent fleet status updates. Demand and pricing in the commodity jackup business in the GOM has been improving steadily as most drilling has shifted over to oil. We believe the market has tightened to the point where reactivations of stacked capacity are likely which generates significant earnings leverage. Even though most drilling has shifted to oil, we actually see HERO as one of the most gas leveraged names as the shallow GoM operators are likely to make absolute decisions on drilling economics (most don’t have the option of drilling in unconventional onshore plays) and rig capacity growth is highly unlikely. Given this backdrop, we are upgrading HERO to BUY from HOLD. We are maintaining our 2012 estimate of ($0.56). Our 2013 and 2014 estimates go to $0.19 and $0.45 from $0.20 and $0.50, respectively."
For an analyst ratings summary and ratings history on Hercules Offshore click here. For more ratings news on Hercules Offshore click here.
Shares of Hercules Offshore closed at $4.45 yesterday.
The firm comments, "We are making adjustments to subsequent quarters/years to reflect the most recent fleet status updates. Demand and pricing in the commodity jackup business in the GOM has been improving steadily as most drilling has shifted over to oil. We believe the market has tightened to the point where reactivations of stacked capacity are likely which generates significant earnings leverage. Even though most drilling has shifted to oil, we actually see HERO as one of the most gas leveraged names as the shallow GoM operators are likely to make absolute decisions on drilling economics (most don’t have the option of drilling in unconventional onshore plays) and rig capacity growth is highly unlikely. Given this backdrop, we are upgrading HERO to BUY from HOLD. We are maintaining our 2012 estimate of ($0.56). Our 2013 and 2014 estimates go to $0.19 and $0.45 from $0.20 and $0.50, respectively."
For an analyst ratings summary and ratings history on Hercules Offshore click here. For more ratings news on Hercules Offshore click here.
Shares of Hercules Offshore closed at $4.45 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
- Piper Sandler Reiterates Overweight Rating on KKR (KKR), 'highest conviction name'
- Movano (MOVE) Misses Q2 EPS by 195c
Create E-mail Alert Related Categories
Analyst EPS Change, Analyst PT Change, Hot Upgrades, UpgradesRelated Entities
Deutsche Bank, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
