UPDATE: Williams Financial Reiterates Buy Rating, Lowers PT for Hornbeck Offshore
In a report released earlier today, Williams Financial Group reiterated its Buy rating for Hornbeck Offshore Services, Inc. (NYSE: HOS) and lowered its price target from $52.00 to $50.00.
Williams Financial said in its report “HOS reported earnings inline with our expectations, but below the street, and combined with a 7% increase in OPEX guidance for labor inflation, the stock traded off about 5%. Still with 90% utilization and rates now up to $23k/d, the GOM continues to be a robust market and some of these higher costs will be passed through to customers. Fleet growth is on schedule and on budget with delivery a year out. Brazil remains a focus market, particularly with summer contract rollovers and as a likely newbuild destination, while MPSV acceptance is generating higher asset utilization and steady revenue contribution. HOS continues to be the favored way to play the GOM UDW revival, and despite a modest drop in price target to $50 on slightly lowered estimates, we reiterate our Buy rating.”
Hornbeck Offshore Services, Inc. closed yesterday at $40.68.
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