First Albany Upgrades Hydril

Analyst R. Thaddeus Vayda believes favorable trends in deep-formation drilling and offshore rig dayrotes bode well for the oil drilling products company

First Albany upgrades oil drilling products company Hydril (HYDL ) to buy from neutral based on an improved risk/reward profile.

Analyst R. Thaddeus Vayda says Hydril shares retreated some 12% since its recent high, about 50% more than Oilfield Services Index over same time.

He says the move was precipitated initially by a pullback in commodity prices and exaggerated by a negative broader market sentiment, leaving the stock priced below the lower bound of his fair value range.

Vayda says favorable trends in deep-formation drilling and offshore rig dayrates bode well for the company's premium connection and pressure control segments, respectively. He sets his $56 to $60 12-month fair value range.

All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is or will be, directly or indirectly related to the specific recommendations or views expressed in this research report.
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