UPDATE: Goldman Sachs Raises PT to $135 on OYO Geospace on Statoil Letter of Intent

Goldman Sachs reiterated its Neutral rating on OYO Geospace

and increased its price target from $120 to $135. Goldman Sachs said, "We update our OYOG model/target price to account for the September 4 press release that indicated the company accepted a non-binding letter of intent (LOI) from Statoil for a seabed seismic reservoir monitoring system for the Snorre and Grane fields (Norwegian continental shelf). While a decision on the potential $160 mn contract is not expected until October, we add $103 mn of revenue spread over FY13-15, as we believe the contract's progression to date makes it highly likely that OYOG captures at least a portion of this contract." OYO Geospace closed at $116.30 on Friday.