Zacks Investment Research Upgrades Rowan Companies plc (RDC) to Buy
Rowan Companies plc (NYSE:RDC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Thursday. The firm presently has a $16.00 price objective on the oil and gas company’s stock. Zacks Investment Research‘s price target would indicate a potential upside of 15.36% from the company’s current price.
According to Zacks, “Rowan Companies offers investors stable earnings and cash flow visibility, given its technologically advanced and versatile offshore drilling fleet, strong backlog and considerable pricing power. Moreover, Rowan’s joint venture with Aramco is expected to drive higher utilizations for the drop-down rigs. Rowan’s cost-control initiatives are also noteworthy. The contract driller managed to lower direct operating expenses by almost 16% over the last nine months. We also appreciate the company’s strengthening balance sheet given that its long-term debt load has been declining since 2015. These positive developments are reflected in the company’s price chart. Over the last six months, Rowan has rallied 3.7%, outperforming the 9.3% decline of the Zacks Oil Drilling industry.”
Several other equities research analysts have also weighed in on the company. Royal Bank Of Canada reaffirmed a “sell” rating and issued a $13.50 target price on shares of Rowan Companies plc in a research report on Thursday, July 20th. Deutsche Bank AG initiated coverage on Rowan Companies plc in a research report on Tuesday, October 10th. They issued a “hold” rating and a $15.00 target price on the stock. initiated coverage on Rowan Companies plc in a research report on Thursday, October 19th. They issued a “buy” rating and a $16.80 target price on the stock. UBS AG raised Rowan Companies plc from a “neutral” rating to a “buy” rating and increased their target price for the stock from $11.00 to $15.00 in a research report on Monday, September 25th. Finally, Piper Jaffray Companies reaffirmed a “buy” rating and issued a $15.00 target price on shares of Rowan Companies plc in a research report on Sunday, October 22nd. Four analysts have rated the stock with a sell rating, twelve have issued a hold rating and eight have issued a buy rating to the stock. The stock currently has a consensus rating of “Hold” and an average target price of $16.52.
Rowan Companies plc (NYSE:RDC) last posted its quarterly earnings results on Wednesday, November 1st. The oil and gas company reported ($0.16) earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.42) by $0.26. Rowan Companies plc had a negative return on equity of 1.58% and a negative net margin of 7.17%. The business had revenue of $291.60 million for the quarter, compared to analyst estimates of $281.51 million. During the same period in the prior year, the company posted $0.30 EPS. The business’s revenue was down 23.1% compared to the same quarter last year. sell-side analysts expect that Rowan Companies plc will post -0.8 earnings per share for the current year.
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A number of hedge funds have recently made changes to their positions in the stock. California Public Employees Retirement System boosted its stake in Rowan Companies plc by 98.6% during the third quarter. California Public Employees Retirement System now owns 691,616 shares of the oil and gas company’s stock valued at $8,887,000 after buying an additional 343,316 shares in the last quarter. Cubist Systematic Strategies LLC boosted its stake in Rowan Companies plc by 297.3% during the third quarter. Cubist Systematic Strategies LLC now owns 170,525 shares of the oil and gas company’s stock valued at $2,191,000 after buying an additional 127,599 shares in the last quarter. Wells Fargo & Company MN boosted its stake in Rowan Companies plc by 160.5% during the third quarter. Wells Fargo & Company MN now owns 672,795 shares of the oil and gas company’s stock valued at $8,646,000 after buying an additional 414,545 shares in the last quarter. Trexquant Investment LP bought a new position in Rowan Companies plc during the third quarter valued at about $1,448,000. Finally, Virginia Retirement Systems ET AL boosted its stake in Rowan Companies plc by 32.7% during the third quarter. Virginia Retirement Systems ET AL now owns 31,096 shares of the oil and gas company’s stock valued at $400,000 after buying an additional 7,664 shares in the last quarter.
Rowan Companies plc Company Profile
Rowan Companies plc is a provider of offshore contract drilling services to the international oil and gas industry. The Company operates through two segments: deepwater and jack-ups. Its deepwater segment consists of drillship operations. As of December 31, 2016, the Company’s fleet consisted of 29 mobile offshore drilling units, including 25 self-elevating jack-up rigs and four ultra-deepwater drillships.
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