UPDATE: Credit Suisse Reiterates on Hercules Offshore on Multiple Negative Factors

In a report published Tuesday, Credit Suisse analyst Gregory Lewis reiterated a Neutral rating on

, but lowered the price target from $7.00 to $5.00. In the report, Credit Suisse noted, “Just about a year after HERO reactivated the 209 in the US GoM, the rig is ready stacked (recall HERO cancelled the reactivation of the rig 203 in February). Bottom line the pace of permitting in the US GoM has been slower than expected year to date which is driving a softening in the US GoM jackup market. We estimate that the 209 has generated about $28M in revenue or about $14M in cash flow versus a reactivation cost of ~$20M – the rig still has some work to do. It will take time but we expect the reactivation project to end up in the black.” Hercules Offshore closed on Monday at $4.71.