C. K. Cooper & Company, an independent, full-service investment bank, headquartered in Irvine, Calif. announced today that it has initiated coverage of Rowan Companies, Inc.
"Rowan Companies, Inc. has a long history in the offshore drilling business back to 1923 and has been a leader in jack up technology, while building approximately 30 percent of the worldwide jack up fleet," said Lewis Kreps, Senior Research Analyst with C. K. Cooper & Company. "Presently, the company has approximately $1.3 billion in contract drilling backlog and $440 million in manufacturing backlog; however the company and the industry are facing an oversupply of jack ups with continued downward pressure on dayrates and utilization. With the recent run-up in the stock price and deteriorating drivers for the company, we recommend investors SELL the stock at present levels and have placed a twelve month $18 price target on the stock based on 12x our earnings estimate of $1.50 per share."
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