J.P. Morgan Raises PT on Rowan Companies to $43 (RDC)

J.P. Morgan is out with its report today on Rowan Companies RDC, increasing its price target from $36 to $43. In a note to clients, J.P. Morgan writes, "We rate RDC Overweight with a $43 Dec 2011 price target (up from $36). Rowan is currently trading at 9.8x adjusted 2012E P/E, which is below the group average of 13.0x. Our $43 price target assumes the stock appreciates to 11.0x our adjusted 2012E P/E, in line with the group price target multiple of 11.0x. We currently model Rowan's asset NAV value at $41 per share and a DCF value of $34 per share. Our $43 price target is based on a slight premium to asset NAV, similar to the recent Pride/Ensco transaction." At the time of posting, shares of RDC were trading at $38.53, up 1.37% from Friday's close.