Rowan Cos. Stock Slips As Credit Suisse Downgrades

SIOUX FALLS, S.D. (AP) — Shares of oil drilling contractor Rowan Companies Inc. fell more than 7 percent Monday morning after Credit Suisse downgraded the stock saying it is overvalued in its sector.

Shares, which have more than doubled in value since hitting a one-year low of $10.28 in February, lost $1.74, or 7.6 percent, to $21.44 in morning trading. The stock was trading over $45 a year ago.

Credit Suisse analyst Arun Jayaram lowered Rowan to "Underperform" from "Neutral" in a client note, saying that in a subdued growth environment, the market will increasingly focus on drillers' normalized earnings, which are adjusted to remove unusual or one-time influences. ...