BMO Upgrades Slate Of Offshore Drilling Stocks To Market Perform

A slate of offshore drilling stocks were upgraded to Market Perform from Underperform Tuesday by BMO Capital, citing an improving balance of risks versus rewards. BMO's Alan Laws said in a note that the "potential for a surprise demand uptick now outweighs already price-in risks of further weakening." Alan Laws. Laws said as the sector improves, companies will be increasingly differentiated as opposed to being viewed as a single group. Among the batch, Laws prefers Atwood Oceanics

and Ensco

. " While other subsectors in Oil Services remain more attractive today, we believe value and contrarian investors should start kicking tires," Laws said. Ensco traded recently at $54.70, up 1.15 percent,: Atwood gained 2.15 percent to $50.93 Others also upgraded to Market Perform, from Underperform were Transocean

up 0.74 percent to $43.70; Seadrill

up 0.5 percent to $38.45; Diamond Offshore

up 1.6 percent to $49.33 and Noble,Rowan

up 1.1 percent at $31.74.