Simmons Remains Sidelined on Core Laboratories (CLB) - PT to $115

Simmons maintained a Neutral rating on Core Laboratories (NYSE: CLB), and raised the price target to $115.00 (from $105.00), following the company's 1Q earnings review.

Analyst Bill Herbert commented, "Respectable quarter given oppressive conditions. While CLB's value proposition provides the company above average revenue and margin insulation, it is far from immune from the Darwinian realities confronting the industry. Q2 guidance was plausibly in-line with Street expectations. FCF generation was robust and should continue to be the fulcrum of the story - needs to be in order for CLB to adhere to its 2.5x net debt/adjusted EBITDA covenant (currently 1.9x) given the downward trajectory in trailing EBITDA and the need to continue paying down debt. Stock is fairly/fully valued, trading at 30x our estimate of 2018 EPS. We ascribe a high 20sx P/E as a targeted multiple based on the company's leadership standing within the higher realms of oil technology and value proposition to resource holders, as well as best-in-class ROCE."

For an analyst ratings summary and ratings history on Core Laboratories click here. For more ratings news on Core Laboratories click here.

Shares of Core Laboratories closed at $124.78 yesterday.

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