Williams Financial Initiates Coverage of Pacific Drilling, Gives Hold Rating, $11 PT
In a report released earlier today, Williams Financial Group announced that it is initiating coverage of Pacific Drilling SA (NYSE: PACD), along with a Hold rating and an $11 price target.
Williams said in the report “Despite adequate cash flow from operations for 2012 Capex and debt payments, PACD will require additional capital for final rig payments in 2013, where debt/cap is likely to peak near 47%. Given the company's asset base and contract backlog, we believe a premium valuation is applicable and we use a 9.0x EV/EBITDA multiple to derive an $11 price target.”
Pacific Drilling SA closed on Thursday at $10.16.
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