Wells Fargo Downgrades Vantage Drilling Co (VTG) to Market Perform

Wells Fargo downgraded Vantage Drilling Co (NYSE: VTG) from Outperform to Market Perform with a valuation range fo $2.00-$2.20, citing valuation.

Analyst comments Matthew D. Conlan, "VTG has reached the doorstep of our $2.00-2.20 valuation range, compelling us to step to the sidelines on the stock. While VTG screens at a discounted valuation on P/E and P/CF metrics, when we factor in estimates for the true cost of the company’s substantial high-yield debt, we
estimate VTG currently trades at a premium to most offshore drillers on EV/EBITDA and NAV metrics, and in line with our valuation targets for the group as a whole (7.4x 2014 EBITDA; 130% EV/EBITDA). As such, we view VTG as fairly valued and are downgrading the stock to Market Perform."

For an analyst ratings summary and ratings history on Vantage Drilling Co click here. For more ratings news on Vantage Drilling Co click here.

Shares of Vantage Drilling Co closed at $1.96 yesterday.

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