Rowan Downgraded On Stock Value, Fleet Status

NEW YORK (AP) — A run-up in Rowan Cos.'s stock price and disappointing fleet news prompted an analyst to downgraded the contract drilling services company on Tuesday.

Shares of Rowan fell 10 cents to $22.99 in morning trading. Since hitting a year-low of $10.28 in February, shares have more than doubled.

Jesup & Lamont analyst Lewis Kreps downgraded the Houston company to "Sell" from "Hold," citing the company's recent fleet status update which revealed prolonged shipyard time on four Middle East jackup rigs as well as a lower day rate in exchange for a contract extension for the Gorilla V rig in the North Sea.

Additionally, the company has eight jackup rigs without contracts: four in the domestic market and four in the Middle East.

Kreps lowered his 2009 profit estimate to $2.95 per share from $3.10 per share. For 2010, he cut his forecast to $1.70 per share from $1.95 per share. Analysts polled by Thomson Reuters estimated 2009 and 2010 earnings of $3.10 per share and $1.88 per share, respectively.