UPDATE: Williams Financial Group Raises PT to $8 on Hercules Offshore on Project Reactivation
Williams Financial Group reiterated its Buy rating on Hercules Offshore (NASDAQ: HERO) and increased its price target from $7.50 to $8.
Williams Financial Group commented, "Hercules Offshore provided a fleet status update noting the reactivation of the Hercules 209 (200' MC), several $85k/d contracts and improved liftboat utilization. We believe the company will further benefit from the GOM jackup shortage. … The talk of rig reactivation turned to action quicker than anticipated and upside is now reflected in our model. The company continues to illustrate our thesis by adding backlog at higher than expected rates as domestic demand keeps rigs working at high utilization while rate growth continues. We believe shares are undervalued and reiterate our Buy rating."
Hercules Offshore closed at $5.16 on Friday.
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