Rowan "neutral," target price reduced

05/05/08 - Credit Suisse

NEW YORK, May 5 (newratings.com) - Analyst A Jayaram of Credit Suisse maintains his "neutral" rating on Rowan Companies Inc (RDC), while reducing his estimates for the company. The target price has been reduced from $46 to $42.

In a research note published on May 2, the analyst mentions that the company has reported its 1Q EPS short of the estimates and the consensus on account of weaker-than-expected manufacturing results due to a delay in shipments. The company has issued its revenue guidance for contract drilling for 2Q at $350-$355 million. The EPS estimates for 2008 and 2009 have been reduced from $4.57 to $4.10 and from $5.61 to $5.10, respectively.