UPDATE: Global Hunter Upgrades Hercules Offshore to Buy (HERO)

Global Hunter is out with its report today on Hercules Offshore (NASDAQ: HERO), upgrading HERO from Neutral to Buy.

In a note to clients, Global Hunter writes, "Hercules is improving its position in the US Gulf shallow water market upon acquisition of 20 Seahawk jackups with deal closure in two weeks. In addition to operating 43% of the marketed fleet, HERO will dominate the market's idle capacity as well. Both utilization and rate trends are positive and the potential for capacity to be constrained also exists. We are increasing our price target to $7 from $5.30 and upgrading shares to a Buy rating from Neutral."

At the time of posting, shares of HERO were trading pre-market at $6.46, up 3.69% from Wednesday's close.