BRNC Exploring Newbuild Additions

Analysts at Pritchard Equity Research reiterate their "neutral" rating on Bronco Drilling Company BRNC, while raising their estimates for the company. The target price for BRNC is set to $6. According to Pritchard Equity Research, “BRNC has concluded its well-servicing segment and heavy haul trucking division are no longer consistent with its long-term strategic objectives and put the assets up for sale. During Q2 2010, Clydedale Trucking was sold for $11.3 million, which along with a $13 million federal tax refund was used to reduce debt.” “Rather than making one-off acquisitions, BRNC is exploring newbuild additions. The land drillers have cited lead times of six to twelve months, but BRNC believes it can take delivery of at the short-end of that range… BRNC is in discussions with its banking group to renegotiate the covenants for its credit facility, which it is expected to violate in the current quarter,” the analysts add. Pritchard Equity Research has raised its EPS estimates for 2010 and 2011 from -$0.92 to -$0.70 and from -$0.73 to -$0.30, respectively. More Analyst Ratings here.