Independence Contract Drilling (ICD): Raising PT to $8.50 - FBR

FBR Capital analyst, Thomas Curran, reiterated his Outperform rating on Independence Contract Drilling (NYSE: ICD) and raised the NAV based price target to $8.50 from $6.25 due to three key developments:
1) third-party vendors have largely held pad optimal Tier 1 new build prices constant and begun to see an uptick in customer interest;

2) in its takeover price for Seventy Seven Energy (NASDAQ: SVNT), Patterson-UTI Energy (NASDAQ: PTEN) seems to have assigned almost full replacement cost value to Nomac (the drilling business)'s fleet of 28 pad optimal Tier 1 rigs;

3) the latest issue of the Day Rate Flash Report pointed to an inflection in day rates.

The market moves lead the analyst to raise his fleet NAV estimate per rig from $17.5 million to $23.5 million.

For an analyst ratings summary and ratings history on Independence Contract Drilling click here. For more ratings news on Independence Contract Drilling click here.

Shares of Independence Contract Drilling closed at $6.74 yesterday.

You May Also Be Interested In

• QuantumScape (QS) PT Lowered to $6 at Truist Securities
• Piper Sandler Downgrades Magnolia Oil & Gas Corp. (MGY) to Neutral
• Victrex Plc. (VCT:LN) (VTXPF) PT Lowered to GBP17.50 at Barclays