UPDATE: Credit Suisse Initiates Pacific Drilling at Outperform on Expected Upside

In a report published Wednesday, Credit Suisse analyst Gregory Lewis initiated coverage on Pacific Drilling (NYSE: PACD) with an Outperform rating and $13.00 price target.

In the report, Credit Suisse noted, “We are initiating on PACD with an Outperform rating and a $13 target price which points to 30% upside. We expect dayrates in the UDW market to remain flat to up in the near term which we believe bodes well for PACDs two uncontracted drillships. Additionally, we believe PACD has capacity to add 1-2 newbuild drillships over the next two years. Our 2013 EPS estimate is in-line and our 2014 EPS estimate is 6% above consensus.”

Pacific Drilling closed on Tuesday at $9.59.