UPDATE: FBR Downgrades Helmerich & Payne, Raises Price Target

FBR Capital downgraded shares of Helmerich & Payne (NYSE: HP) to Market Perform, but the price target was raised from $110 to $120.

Analyst Thomas Curran noted that the downgrade was based on valuation.

Curran writes, “Given the sustained strength of incremental Tier 1 newbuild contracting, our unchanged view on the remaining number of rigs to be ordered in the secular Tier 1 fleet buildout, and at the company-specific level the reliable indicator epitomized by HP's prior increases in cadence, we are raising our projection for the driller's aggregate CY2014–CY2015 newbuild deliveries from 72 to 83.”

The increase in price target is related to increased estimates based on catalysts in the above comment.