UPDATE: Wunderlich Securities Initiates Coverage on Vantage Drilling Company with Buy Rating, $4 PT on Attractive Current Levels

In a report published Wednesday, Wunderlich Securities analyst Todd P. Scholl initiated coverage on Vantage Drilling Company VTG with a Buy rating and $4.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of Vantage Drilling Company (VTG) with a Buy rating and a target of $4, representing a6.0x 2015 EV/EBITDA multiple. Vantage has evolved from a Special Purpose Acquisition Company with a few jack-up rigs under construction to an international offshore drilling contractor operating in both the deep and shallow water. The company has recently refinanced its balance sheet, giving the company more financial flexibility. The company has also recently begun construction on a second newbuild UDW drillship, the Cobalt Explorer. We believe these developments warrant a re-rating of the shares to a higher level. Vantage is a special situation stock with minimal liquidity and one particularly large shareholder but, at current levels, we believe the shares are attractive.” Vantage Drilling Company closed on Tuesday at $1.72.