NEW YORK (TheStreet) -- Shares of Hercules Offshore (HERO) are down 6.58% to $1.07 after Global Hunter Securites lowered their price target to 80 cents from 90 cents and restated their "reduce" rating.
The Texas-based shallow-water driller recently released its fleet status report that showed it now has 10 rigs "cold stacked," with four stacked since October.
Despite the massive sell-off in shares, Jefferies does not yet believe it is time to be long the Offshore Drilling subsector, as neither fundamentals nor valuation paint a compelling enough picture of the group, they said.
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Separately, TheStreet Ratings team rates HERCULES OFFSHORE INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate HERCULES OFFSHORE INC (HERO) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk."
Highlights from the analysis by TheStreet Ratings Team goes as follows: