UPDATE: Wunderlich Securities Initiates Coverage on Pacific Drilling SA with Buy Rating, $16 PT on Attractive Pure Play

In a report published Wednesday, Wunderlich Securities analyst Todd P. Scholl initiated coverage on Pacific Drilling SA PACD with a Buy rating and $16.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of Pacific Drilling (PACD) with a Buy rating and a price target of $16, which represents a 6.3x 2015 EV/EBITDA multiple. Pacific Drilling is a pure play UDW driller with four high specification UDW drillships and four more under construction. Additionally, Pacific, in conjunction with Chevron (CVX-NR), is a pioneer in dual gradient drilling, a technology that could prove to be a step-change in the way high pressure wells are drilled.” Pacific Drilling SA closed on Tuesday at $9.75.