Rowan Companies (NYSE:RDC) a Catalyst-Rich Stock Says Barclays

The recent announcement by Rowan Companies (NYSE:RDC) of an LOI for the Rowan Stavanger, is another example of the numerous catalyst the company will enjoy going forward.

Barclays says, "We believe the announcement of an LOI for the Rowan Stavanger should alleviate some of the market concerns over the N-Class rigs as all three rigs are now committed. We expect the LOIs to become firm contracts in the near-term. In our view, Rowan remains a catalyst-rich stock that is a pure-play on the high-spec jackup market, one of the most attractive asset classes in offshore drilling currently. Upcoming Saudi Aramco awards and the monetization of non-core assets are looming catalysts for RDC.

"We are adjusting our 4Q10 EPS estimate to $0.28 (from $0.23) and 2011 EPS estimate to $1.90 (from $2.15) to reflect for incremental downtime and new contracts. Our 2012 EPS estimate remains $3.40."

Barclays reiterates an "Overweight" rating on Rowan Companies (RDC), which closed Monday at $33.10, down $0.39, or 1.16 percent. Barclays has a price target on them of $$40.