UPDATE: Williams Financial Group Reiterates Buy Rating, Raises PT on Atwood Oceanics
In a report published Monday, Williams Financial Group reiterated its Buy rating on Atwood Oceanics (NYSE: ATW), and raised its price target from $57.00 to $61.00.
Williams Financial noted, “ATW reported fiscal 4Q EPS well above both our expectation and the Street's, but the stock lagged the group, perhaps with 2013 OPEX guidance bringing down estimates. The company's newbuild jackup fleet should all start operations ahead of schedule and timely drillship delivery should prove favorable with manageable staffing requirements. Debt needs peak in 2015 at about $1.8B (less than 40% debt/cap). The outlook for UDW remains robust and ATW has a remaining option due in June while the jackup fleet has a nice balance of backlog and near‐term upside potential. We are initiating 2014 EPS estimates of $5.81 and EBITDA of $645MM, which are the drivers for valuation. We are maintaining our Buy rating and increasing our price target to $61.”
Atwood Oceanics closed on Friday at $44.83.
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