UPDATE: BMO Capital Markets Downgrades Union Drilling

BMO Capital Markets has published a research report on Union Drilling

and has downgraded the company from Outperform to Market Perform. In the report, BMO Capital Markets wrote, "Union's shares have risen nearly 70% since early August, sharply reducing the massive valuation discount to both its peers and its own asset value in the process. On August 1, UDRL's shares were trading at an EV/Rig of just $3.5 million, by far the lowest in our coverage universe and only modestly above equipment salvage value. Since then, with the strong share price performance, the shares now imply an EV/rig of roughly $4.8 million, still a discount to our estimated equipment replacement value but more in line with its North American land drilling peers on this basis." BMO Capital Markets raised the price target from $6 to $7 on Union Drilling, which is currently trading up 5.71 percent from Monday's $6.13 closing price.