ATW Signing Another Positive Contract

Analysts at Oppenheimer & Co reiterate their "outperform" rating on Atwood Oceanics Inc ATW, while raising their estimates for the company. The target price for ATW is set to $35. According to Oppenheimer & Co, Atwood announced a new contract for the 400 jackup at Atwood Beacon at a dayrate of $115K, starting in late September. This marks the second contract in the last couple of weeks for this rig. "The rate represents an increase over both the current $110K dayrate and our forecast of $96K, demonstrating a firming market for premium (>300') jackups,” the analysts say. “Atwood remains a top pick given its limited exposure to the challenging Gulf of Mexico region, solid deepwater backlog, and attractive valuation,” the analysts add. Oppenheimer & Co has raised its EPS estimate for FY11 from $4.28 to $4.33. More Analyst Ratings here