Citigroup Maintains Neutral on Hercules Offshore

Citigroup reiterates its Neutral rating on Hercules Offshore

as consensus estimates on the company's EPS appear light. Citigroup notes, "We believe there is significant upside to HERO's 2013 consensus EPS estimate (-$0.08 vs. our +$0.13 estimate), the realization of which could be a catalyst for HERO shares. We believe the street is failing to appreciate the operating leverage inherent in HERO's business model as the jackup environment tightens. Although several sell-side analysts now have their 2013 EPS in positive territory, we expect others will soon follow suit." HERO closed at $5.45 a share on Thursday.