UPDATE: Clarkson Capital Downgrades Parker Drilling to Market Perform on US Rental Business Concerns

In a report published Friday, Clarkson Capital Markets analyst Todd P. Scholl downgraded the rating on Parker Drilling Company (NYSE: PKD) from Outperform to Market Perform, and lowered the price target from $8.00 to $5.00.

In the report, Scholl noted, “Parker Drilling shares are rated Market-Perform (previously Outperform) with a target price of $5 (previously $8) which represents 11.7x our 2014 EPS estimate. Parker Drilling has a well-balanced revenue mix that is primarily split between rentaltools, GOM barge drilling, international land & barge drilling, and most recently Alaska land drilling. While drilling divisions have shown some operational improvements (that we expect could continue during the remainder of 2013), our rating reduction is based on our concerns that rig count efficiencies will impact PKD's US rental business and its efforts to re-expand its operating margins.”

Parker Drilling Company closed on Thursday at $4.39.