UPDATE: Citigroup Reiterates on Helmerich & Payne After Positive Comments on Spot Rates

In a report published Monday, Citigroup analyst Robin Shoemaker reiterated a Buy rating on

, and raised the price target from $82.00 to $89.00. In the report, Citigroup noted, “We have raised our EPS estimates in FY2014 and FY2015 as we believe that demand for high-spec A.C. rigs will support a modest uplift in the average spot rate across the HP fleet. We also expect that the two FlexRigs a month of ongoing new construction will be absorbed by the market in part to replace legacy rigs operated by competitors. We have raised our price target from $82 to $89 on our upward estimate revision.” Helmerich & Payne closed on Friday at $79.27.