UPDATE: Imperial Capital Resumes Coverage on Ocean Rig UDW with Outperform Rating, $19.50 PT

In a report published Wednesday, Imperial Capital resumed coverage on Ocean Rig UDW

with an Outperform rating and $19.50 price target. Imperial Capital noted, “We are assigning an Outperform rating to the ORIG common stock and establishing a one-year price target of $19.50, based on 11.5x our 2013 adjusted EBITDA estimate of $545mn. The contract backlog of approximately $4.5bn provides strong earnings visibility; ORIG earnings should begin to improve in the second half of 2013 and improve substantially in 2014 as the on-the-water fleet increases to nine vessels from its current size of six.” Ocean Rig UDW closed on Tuesday at $17.47.