UPDATE: Deutsche Bank Raises PT to $14 on Pacific Drilling SA on Management Guidance
Deutsche Bank reiterated its Buy rating on Pacific Drilling SA (NYSE: PACD) and raised its price target from $12 to $14.
Deutsche Bank noted, "As with other early stage drillers, Pacific Drilling is seeing some cost over-runs and downtime associated with newbuild rigs. However, these issues seem to be limited to the very short term with more established rigs exceeding uptime targets. This gives us hope that the newbuild issues will work themselves out and PACD will be able to fully realize its earnings potential. With one rig still un-contracted and another LOI appearing likely in the near-term, positive catalysts remain and we continue to rate PACD a BUY."
Pacific Drilling SA closed at $10.33 on Friday.
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