Clarkson Capital Markets Reiterates Outperform Rating, $12 PT on Pacific Drilling SA

In a report published Wednesday, Clarkson Capital Markets reiterated its Outperform rating and $12.00 price target on Pacific Drilling SA PACD. Clarkson Capital noted, “We believe Pacific Drilling offers attractive revenue and earnings potential bundled in the form of a young pure-play UDW drilling contractor. Along with its current fleet of four drillships, the company has three newbuilds scheduled for delivery in 2013 and 2014. As Pacific's newbuilds get delivered we anticipate dramatic revenue and EBITDA growth through 2015. And with its oldest rig built in 2010, we believe Pacific's age profile and fleet quality represent a competitive advantage over other companies in our coverage universe. Finally, Pacific Drilling trades at 88% of our calculated NAV, as compared to the group average of 108%, implying favorable upside relative to current levels.” Pacific Drilling SA closed on Tuesday at $9.56.