Pritchard Equity Has $31 Target, Buy Rating On Rowan (RDC)

Pritchard Equity Research is raising its price target on shares of Rowan Companies RDC to $31 from $27 after the driller reported better than expected earnings yesterday. Pritchard rates shares as a Buy. In the report Pritchard Equity notes, "RDC reported $0.79 vs. our $0.66 and consensus $0.67. We expect earnings in the next two quarters to decline as rigs leave the GOM and incur reduced dayrates during yard visits and mobilizations. However, we model 2011 up from 2010 and expect earnings growth to continue into 2012. Increasing PT to $31 from $27. We continue to like RDC's leading position in the premium jackup market and expect rates to hold firm in 2010 and trend upward in 2011." Shares of Rowan are at $26.90, up 87‎ cents.