KLR Group Upgrades Atwood Oceanics (ATW) to Accumulate

KLR Group upgraded Atwood Oceanics (NYSE: ATW) from Hold to Accumulate with a price target of $6.75 (from $6.50).

Analyst Darren Gacicia commented, "We are upgrading ATW to Accumulate from Hold and raising our PT to $6.75 from $6.50. Adjusting for higher risk, we see the risk/reward becoming more favorable for ATW shares under $6. Credit concerns remain, but our high discount rate (~30%) factors balance sheet risk. ATW screens as a more attractive, yet risky, small cap play with a high quality fleet among offshore drillers. If you assume debt covenants can be renegotiated, we see potential upside from the shares that may factor reduced financial risk."

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 $5.62 yesterday.

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