Tuesday, January 11, 2011

Pride International (NYSE:PDE) Lacks Positive Catalyst in 2011

Pride International (NYSE:PDE) have little in the way of postive catalysts in 2011, and older midwater floaters and jackups could produce negative catalysts going forward, according to Global Hunter.

Global said, "Pride stock currently trades near our $31 price target and with the exception of being rumored as a takeover target, we anticipate limited positive catalysts. The contracts provided by the new ultra-deepwater rigs provide a solid backlog, but near-term challenges remain regarding startup timing for the rigs. Furthermore, the older jackups and midwater floaters could produce negative catalysts as well with the potential for reduced utilization or dayrates. As such, we reiterate our rating."

Global Hunter Securities reiterates a "Neutral" on Pride International, which was trading at $32.43, down $0.04, or 0.12 percent, as of 1:53 PM EST. Global has a price target of $31 on them.

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