Pride International Rises; Analyst Starts Coverage

NEW YORK (AP) — Shares of Pride International Inc. jumped Thursday after an analyst initiated coverage of the offshore drilling contractor with an "Outperform" rating.

Shares rose $1.25, or 4.9 percent, to $26.93 in afternoon trading. The stock has ranged from $10.62 to $34.56 over the past year.

"Pride has transformed itself from a financially strapped driller with no clear direction, to a company with one of the highest spec deepwater fleets in the industry," said BMO analyst Alan Laws in a note to clients Wednesday. He assigned the company a $32 share price target.

Laws noted the company has a $7.4 billion backlog to help it weather the current downturn. Additionally, Pride's revived balance sheet was upgraded to investment grade amid the global financial crisis, signaling financial health going forward.

"We like Pride's deepwater positioning, growth and relatively strong earnings profile," said Laws.