Veritas DCG "buy"

09/01/06 - Capital One Southcoast

NEW YORK, September 1 (newratings.com) - Analysts at Capital One Southcoast reiterate their "buy" rating on Veritas DCG Inc (VTS). The target price is set to $69.

In a research note published this morning, the analysts mention that Veritas DCG’s share price has appreciated by 12% since August 28 due to speculations of the potential acquisition of the company by Petroleum Geo-Services ASA. The potential acquisition of Veritas DCG, along with its fleet of seismic vessels, would be in-line with Petroleum Geo-Services ASA's growth strategy, the analysts say. The acquisition is, however, expected to be dilutive to Petroleum Geo-Services ASA’s EPS going forward, Capital One Southcoast adds.