Hercules (NASDAQ:HERO) Shares Over-Valued Says Wells Fargo (NYSE:WFC)

Hercules (NASDAQ:HERO) appear to be over-valued, according to Wells Fargo (NYSE:WFC), which see them having to issue equity to strengthen its balance sheet, resulting in dilution of shares.

Wells said, "We think HERO's shares are over-valued, even at current values that look cheap relative to the longer-term NAV of the company's equipment. We think HERO will eventually have to issue substantial equity to shore up its balance sheet, implying significant dilution may lie ahead."

Wells Fargo downgraded Hercules Offshore (NASDAQ: HERO) from "Market Perform" to "Underperform." Hercules was trading at $3.15, down $0.47, or 12.98 percent, as of 1:28 PM EST. Wells has a range of $2.00 to $2.50 on the stock.