Gabelli Has Buy on Union Drilling

Gabelli & Co. is out with a research report on Union Drilling Inc

and it has a Buy rate on shares. In a note to clients, Gabelli & Co. writes, "We are raising our 2011 and 2012 EPS estimates to ($0.35) and $0.15, from ($0.45) and $0.10, respectively, to reflect lower costs. The company returned to profitability in the 3Q and announced that it will sell 31 of its smaller conventional rigs via an auction in December." Shares of UDRL closed at $7.49 yesterday.