Dahlman Rose & Co. Reiterates Buy Rating on Rowan Companies (RDC)

Dahlman Rose & Co. is out with a research report this afternoon, where it reiterates its Buy rating on Rowan Companies RDC; it has a $33.00 price target on the stock. The Dahlman analysts cited the company’s recent earnings report, which beat estimates, due primarily to higher drilling revenues and results in the company’s manufacturing division. The analysts cited the company’s positive outlook for the high-end jackup market as well, noting that it expects to receive a commitment soon for its new build EXL III from McMoRan, delivering in March 2011. The Dahlman analysts continue to a bifurcation in the offshore drilling market, with high-end units significantly better positioned than older ones within an environment of tighter regulation and oversight. As for valuation, they remarked, “Overall, we believe Rowan's operational advantages will continue to allow it to outperform. We reiterate our Buy rating and $33 target, based on our NAV assessment.”