Jefferies Downgrades PDE To Hold From Buy

Jefferies is downgrading Pride International, Inc. (NYSE: PDE) to Hold from Buy.

“With earnings growth moderating in 2012 and the Company trading towards the upper end of our forecasted trading range expectations for the offshore drillers at 6.8x 2012 TEV/EBITDA, 124% of NAV, and 88% of replacement value, we are downgrading PDE to Hold from Buy,” Jefferies writes.

“With a 12-month price target within 15% of the current share price (which is the Jefferies research threshold for a Buy vs. a Hold rating) and limited prospects for an increase in UDW and DW dayrates in 2011 and 2012, we are going to a Hold rating.”

Pride International closed Monday at $32.45.