In a report published on Thursday, Goldman Sachs analyst Waqar Syed upgraded offshore oil and gas drilling company, Atwood Oceanics ATW from Hold to Buy and raised its 12 month PT from $60 to $68 based on optimistic prospects on future EPS growth.
Syed pointed out in the report, "In 2013, we forecast that ATW's EPS will grow owing to the full-year impact of three rigs, Atwood Condor, Atwood Mako and Atwood Manta that joined the fleet in late 2012. A semisubmersible like Condor can boost EPS annually by $1.13/share while the two jackups Mako and Manta can each add $0.32/share to annual EPS. In addition, in 2013 the under-construction ultra-deepwater drillship Advantage and the under-construction jackup Orca join the fleet, partly impacting 2013E EPS but having a full-year impact in 2014."
Atwood Oceanics closed on Wednesday at $54.93.
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