Market Overview

UPDATE: RBC Capital Markets Upgrade Rowan Companies

Share:
Related RDC
Benzinga's Top Downgrades
Nordea Equity Downgrades Rowan Companies To Sell
Notable earnings before Friday's open (Seeking Alpha)

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
Feb 2015Capital One FinancialDowngradesOverweightEqualweight
Feb 2015BMO CapitalInitiates Coverage onMarket Perform
Feb 2015Nordea EquityDowngradesHoldSell

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)

Around the Web, We're Loving...

Get Benzinga's Newsletters

Our Experts vs. S&P 500Powered by Benzinga
Marketfy Products Return S&P 500
Morning Profit Maker 42.72% 6.69%
The Option Prophet 91.14% 6.69%
SecretCaps 26.55% 6.69%
Short-Term Trend Trading 11.89% 6.69%
View the highest rated products→