UPDATE: ISI Upgrades Hercules Offshore on Positive Strategic Changes

In a report published Monday, International Strategy and Investment Group analyst Judson E. Bailey upgraded Hercules Offshore (NASDAQ: HERO) from Buy to Strong Buy and raised its price target from $9.00 to $10.00.

In the report, ISI cited, “With the recent barge fleet sale in May and the two deals announced today to sell HERO’s domestic liftboats and effectively acquire 2 high-spec jack-ups through the Discovery Offshore (DISC NO, NC) acquisition, we believe HERO is taking the next step in the Company’s transformation into a purer offshore drilling story with an improving asset base. In addition to the strategic changes going on at HERO, we continue to believe the Company remains the best positioned driller to capture incremental earnings growth from additional dayrate upside in the GOM jack-up market.”

Hercules Offshore closed Monday at $6.83.