Goldman Sachs Sees 24% Upside To Its $36 PT On HOS; Reiterates CL Buy

While Goldman Sachs says that it did not expect to see any strength until deepwater drilling returned, “vessel utilization rates have taken a step up in March and dayrates appear to have troughed due to increased shallow water activity and non-drilling related work.” “We continue to expect new deepwater drilling to start as early as April and to drive the next leg of OSV demand, but faster than expected improvement represents an upside risk to our already well-above consensus estimates,” Goldman Sachs writes. “We reiterate our CL Buy on Hornbeck Offshore Services, Inc. HOS and see 24% upside to our $36 price target.” Hornbeck Offshore Services closed Monday at $28.64.