UPDATE: Global Hunter Securities Downgrades Rowan Companies to Neutral, Lowers PT

In a report published Friday, Global Hunter Securities downgraded its rating on Rowan Companies RDC from Buy to Neutral, and lowered its price target from $38.00 to $35.00. Global Hunter noted, “Continued estimate reductions due to increased shipyard time have been a recurring trend and we view its estimate that just 8% of its total rig days in 2013 will be subject to downtime as a difficult hurdle to achieve. While we understand 2012 is a transition year with RDC placing several rigs through substantial upgrades and transit time, we view the upside to 2013 estimates to be less than its peers as 67% of RDC's available days are already booked, with much of its availability weighted toward less-meaningful assets...With fewer contract catalysts, likely more downside risk to estimates than peers and a premium valuation, we find it hard to justify our Buy rating. Applying the same 10x multiple we do for most of its peer group, we are reducing our price target to $35, down from $38, and lowering our rating to Neutral.” Rowan Companies closed on Thursday at $34.84.