Helix Energy +3% as Cowen upgrades to Outperform

|About: Helix Energy Solutions Grou... (HLX)|By:, SA News Editor

Helix Energy (NYSE:HLX) +3% premarket after Cowen upgrades shares to Outperform from Market Perform with a $10 price target, up from $8, saying shares have been greatly de-risked with Siem Helix 1 now working and $320M in proceeds from equity.

The firm says HLX's stock price still implies a low case is baked in, setting up an attractive risk-reward; its modeled EBITDA through 2020 is mostly contracted, and HLX's net asset value suggests ~30% upside too, two main differences compared with drillers.

Cowen also says vessel cancellation remains a low probability risk for HLX.

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