UPDATE: Credit Suisse Downgrades Ocean Rig to Neutral on Near-Term Dead Money

In a report published Wednesday, Credit Suisse analyst Gregory Lewis downgraded the rating on Ocean Rig (NASDAQ: ORIG) from Outperform to Neutral, and lowered the price target from $20.00 to $19.00.

In the report, Credit Suisse noted, “We are downgrading ORIG to Neutral (from Outperform) and lowering our target price to $19 (from $20). Our $19 target price is 7x our 2014 EBITDA (peers at 6x). While ORIG is committed to returning to cash to shareholders we view this as a 2014 event at the earliest which points to ORIG being near term dead money (ORIG is up 15% YTD). Additionally, we see the potential for DRYS to sell down more ORIG shares later this year.”

Ocean Rig closed on Tuesday at $17.11.