UPDATE: Wunderlich Securities Initiates Coverage on Hercules Offshore with Buy Rating, $13 PT Following Successful Transformation

In a report published Wednesday, Wunderlich Securities analyst Todd P. Scholl initiated coverage on

with a Buy rating and $13.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of Hercules Offshore, Inc. (HERO) with a Buy rating and a price target of $13, which represents a 5.7x 2015 EV/EBITDA multiple. We believe Hercules has done an impressive job executing a complete transformation of the company. This transformation has brought the company back from the brink of insolvency to a solid albeit heavily levered operating company that we believe should generate significant growth in free cash flow driven by robust shallow water activity in a tight U.S. Gulf of Mexico jack-up market.” Hercules Offshore closed on Tuesday at $7.27.