UPDATE: Bank of America Upgrades Dril-Quip to Buy on Subsea Wellheads Growth Visibility

Bank of America upgraded Dril-Quip DRQ from Underperform to Buy and raised the price objective from $83.00 to $101.00. Bank of America noted, "In our view, record exploration success and supportive crude oil prices ($100/bbl Brent) are set to drive at least three more years of growth in wells drilled from floating rigs – a key driver of demand for Dril-Quip (DRQ). Based just on announced new construction, the floating rig fleet will likely grow 22% by year-end 2015. With each floating rig drilling more than three wells/year, combined with new comfort in DRQ's revenue capacity, mix and pricing, we are increasing our 2013/2014 EPS estimates to $3.65/$5.05 from $3.55/$4.55. This implies EPS growth will accelerate to 24% in 2013 and 38% in 2014." Dril-Quip closed at $80.99 on Wednesday.