Hercules Offshore -14% after fleet status report, Global Hunter downgrade

|About: Hercules Offshore Inc (HERO)|By:, SA News Editor

Hercules Offshore (HERO -14.1%) plunges after Global Hunter downgrades shares to Neutral from Buy and lowers its target price to $6 from $12 after HERO released its monthly fleet status report.

The firm says it failed to see any of the three key items it was looking for in the report: meaningful contracts for the Discovery rigs; a tick higher in Gulf of Mexico dayrates; and Pemex recontracting several of the legacy jackups set to roll in 2014, indicating to the market that its newbuild awards are not solely replacement rigs but rather incremental.