Credit Suisse Upgrading Rowan Companies

Credit Suisse is out with a research report on Rowan Companies RDC and is upgrading shares to Neutral from Underperform and raising its price target to $46 from $40. In a note to clients, Credit Suisse writes, "We are upgrading RDC shares to Neutral from Underperform given clear evidence our earnings risk concerns for 2012 were overblown given continued marketing success for high-spec jackups, a much leaner than expected offshore cost structure, and a lower tax rate. Even after adjusting for the sale of the company's land rig segment, our 2012 EPS estimate moves to $3.60, which is down only a dime despite selling 30 land rigs. Meanwhile, the company expects to receive $370 MM in after-tax proceeds from the land rig sale at closing." Shares of RDC closed at $38.78 yesterday.