UPDATE: Dahlman Rose & Co Initiates Buy, $14 PT on Precision Drilling

Dahlman Rose & Co initiates a Buy rating and a price target o $14 per share on Precision Drilling (NYSE: PDS) as the company becomes a major beneficiary of horisontal drilling growth in North America.

Dahlman Rose says, "We believe that horizontal drilling in unconventional plays is poised for a multi-year expansion in North America. This will primarily be felt in US oil-prone or liquids-rich basins such as the Eagle Ford, Bakken, and the Permian, but will ultimately spread to the natural gas basins and become more widespread in Canada in the years ahead. As the leader in Canada with the types of rigs that can benefit from this and a major factor in the US market, we consider Precision to be a major beneficiary of this trend."

PDS closed at 10.83 per share on Monday.