S&P Target Price: 53
We see the potential for rig shortages in a number of international regions over the next several years, which, if realized, would likely benefit the company. ATW has an upcoming June 30 deadline to exercise an option for a potential second newbuild floater; if exercised, this rig would represent ATW's eleventh drilling rig. We think it is more likely than not that ATW will exercise the option, given expected strength in deepwater demand, and ATW's recent willingness to construct new rigs without prior commitments.
$42.82 (08/06/08)
