Global Hunter Securities Downgrades Bronco Drilling, Lowers PT To $11 (BRNC)

Global Hunter Securities downgraded Bronco Drilling BRNC from Accumulate to Neutral and lowered Bronco Drilling's price target from $13.50 to $11 in a research report published today. In the report, Global Hunter Securities states, "We are reducing our recommendation on BRNC to Neutral from Accumulate and lowering our price target to $11 from $13.50 following last Friday's announcement that Chesapeake (CHK) is acquiring the company for $315 million, or $11 per share. We do not expect a higher bid and note that BRNC's board, along with its two largest shareholders, has approved the deal. We suggest investors rotate into Pioneer (PDC) and Union (UDRL), our favorite small-cap drillers likely to be beneficiaries of higher rig counts and improving margins throughout the year." Shares of Bronco Drilling were trading at $11.00 at the time of posting, reflecting no change from Friday's market close.