Rowan Upgraded by RBC

Rowan received an investment-rating upgrade Friday to sector perform from underperform from RBC Capital Markets, which also slightly raised its price target on the shares of the provider of offshore-contract-drilling services, citing an improving environment for offshore drillers. The new price target is $14 per share, up from $13.50. In comparison, the stock closed Thursday at $9.45.

In a note to clients that echoed comments it made with upgrades of others in the sector, RBC highlighted that contracted rig utilization has already bottomed and modest improvements are being seen with idle rigs going back to work. “Company tone has definitively improved with commentary indicating more term contracts at positive margins,” the firm said, adding “we believe these activity improvements merit an upgrade to sector perform for RDC.”

By Kristen Tardella