UPDATE: Morgan Stanley Upgrades Helix Energy Solutions to Overweight on Visibility to Attractive Returns
Morgan Stanley upgraded Helix Energy Solutions Group, Inc. (NYSE: HLX) from Equal-weight to Overweight and announced a $27.00 price target.
Morgan Stanley commented, "Well intervention is a niche market with relatively high barriers to entry due to the high cost of vessel construction and a few experienced, disciplined players. We see the market as undersupplied with strong backlog visibility, little near-term availability, and growing demand as we see an increasing population of aging wells. Helix is able to grow by adding newbuilds or converting older rigs into viable intervention vessels."
Helix Energy Solutions closed at $20.85 on Monday.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.