UPDATE: Jefferies Raises PT on Hercules Offshore, Fundamentals Surpass Expectations
Jefferies maintained Hercules Offshore (NASDAQ: HERO) with a Hold rating and raised the price target from $6.00 to $8.00.
Jefferies commented, "We raise our PT to $8 from $6 as fundamentals (domestic jackup rates) have continued to surpass our expectations, and we tweak our dayrate estimates up and lower our sense of risk (i.e. WACC) as a result. That said, for conviction that there is ample upside from here, we need signs elsewhere across the GoM jackup fleet that rates still have significant room to rise, and/or for a rebound and firming up of gas prices ($4+)."
Hercules Offshore closed at $7.02 on Tuesday.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.