Market Overview

UPDATE: RBC Capital Markets Upgrade Rowan Companies

Share:
Related RDC
Earnings Scheduled For February 26, 2016
Barclays Cuts Offshore Drillers En Masse, Sets $0.50 Price For Ocean Rig

In a report published Wednesday, RBC Capital Markets analyst Kurt Hallead upgraded Rowan Companies (NYSE: RDC) to Outperform from Sector Perform, with a $40.00 price target.

According to the report, RDC is in the best relative position in the offshore drilling group given lack of exposure to the deteriorating legacy floater market. Demand for jackups remains robust and RDC has 3 of its 4 newbuild drillships already contracted. Moreover the it is believe RDC will initiate a modest dividend in 2014 with the flexibility to increase it over time.

“Dayrates in both the standard and hi-spec jackup markets continued to show steady improvement throughout 2013,” the report noted. “We expect both these markets to stabilize at current levels in 1H14, while RDC's peer group is likely to be impacted by a drop-off in dayrates and utilization in the legacy floater market.”

RDC indicated it would announce a modest dividend proposal to the board this month, which is expected to be small but with room to grow.

RDC closed Tuesday at $34.01.

Latest Ratings for RDC

DateFirmActionFromTo
Apr 2016NomuraInitiates Coverage onNeutral
Mar 2016BarclaysMaintainsEqualweight
Mar 2016CitigroupMaintainsHold

View More Analyst Ratings for RDC
View the Latest Analyst Ratings

Posted-In: Kurt Hallead RBC Capital MarketsAnalyst Color Upgrades Analyst Ratings

 

Related Articles (RDC)

View Comments and Join the Discussion!