UPDATE: Stifel Nicolaus Raises PT to $7 on Willbros Group Following Sale of Oman Interests
Stifel Nicolaus reiterated its Buy rating on Willbros Group (NYSE: WG) and raised the price target from $6 to $7.
Stifel Nicolaus said, "Willbros (WG) group filed an 8k on January 10th, detailing the sale of its interests in Oman. WG sold its interest for $41.3 million, which will net WG over $36 million after transaction related costs. We estimate that the sale price represents ~5.0-5.5x TTM EBITDA for the operations. We view the transaction multiple as reasonable, for what was one of WG's more profitable operations. We support the decision to sell in light of more pressing liquidity needs and the non-core aspect of WG's Oman operations."
Willbros Group closed at $5.68 on Thursday.
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Tags: Stifel Nicolaus