FBR Capital Reiterates an 'Outperform' on Core Laboratories (CLB); Raises PT & Estimates

October 23, 2009 8:15 AM EDT

FBR Capital reiterates an Outperform rating on Core Laboratories (NYSE: CLB), raising price target to $149 from $140.

FBR analyst says, "We believe Core should see a near-term earnings recovery as its customers' international oil spending increases in 2010 and as shale gas activity increases. Furthermore, as the inventory of 1,300 to 1,400 uncompleted gas wells starts to be worked through, this should also benefit the perforating charge business, which is already recovering. Longer term, the development of new plays such as international gas shales and emerging deepwater plays, like the Lower Tertiary in the U.S. Gulf, should further increase demand for Core's services."

"We are increasing our EPS estimates to $5.35 and $6.75 from $5.20 and $6.34 for 2010 and 2011, respectively. One other sell-side analyst's EPS estimate is $5.25 for 2010, and the next-closest 2011 EPS is $5.95. Our 4Q09 EPS estimate of $1.21 is slightly higher than the high end of management's guidance of $1.20."

To see more analyst ratings on CLB Click Here.

Core Laboratories N.V. provides reservoir description, production enhancement, and reservoir management services to the oil and gas industry worldwide.

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