UPDATE: BMO Capital Markets Reiterates Market Perform Rating, Raises PT on Hercules Offshore on Positive EPS

In a report published Wednesday, BMO Capital Markets reiterated its Market Perform rating on Hercules Offshore

, and raised its price target from $7.00 to $8.50. BMO Capital Markets noted, “HERO put up EPS of $0.03 vs. our expected loss of $0.08. Consensus was looking for a loss of $0.07. An apparent beat on the headline but several non-reoccurring items made up most of the positive delta and included $8.8mm in asset sale gains and a $10mm ADC contract recovery (both consistent with previous quarters treatment). Ex these benefits, core operating results were relatively in line with slightly better results in the liftboats segment. The remaining difference was attributable to slightly higher G&A and a more beneficial tax rate (i.e., more negative). All in, we'd call it an in-line quarter operationally with benefits from non-reoccurring items. That said, both of the adjustments are positive developments in the story that should be viewed favorably. Both contribute cash to be redeployed/reinvested in the fleet. Both help advance the story strategically.” Hercules Offshore closed on Tuesday at $7.13.