Global Hunter Securities Reiterates an 'Accumulate' on Oil States (OIS); Raising Estimates & PT to Account for Oil Sands Expansion
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Price: $103.01 +1.10%
Rating Summary:
11 Buy, 9 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 21 | Down: 43 | New: 13
Rating Summary:
11 Buy, 9 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 21 | Down: 43 | New: 13
Trade OIS Now!
Global Hunter Securities reiterates an 'Accumulate' on Oil States International (NYSE: OIS), PT increased from $82 to $86.
Global analyst says, "Yesterday AMC, OIS announced its Board of Directors approved the construction of Henday Lodge, located adjacent to its Wapasu Creek lodge in the oil sands region of northern Alberta, Canada...Assuming 80% annual occupancy (1,000/1,264), and revenues per room in line with Wapasu, we estimate the lodge will add ~$15-$20MM in annual EBITDA and 20-25c in EPS accretion in 2012. As we had already modeled the capex guidance, our depreciation estimate remains unchanged but earnings and cash flows improve with the incremental revenues...While we expect Q1 2011 results were adversely impacted by inclement weather and seasonality, likely keepings results flat sequentially for its Well Site Services businesses, and that improved pricing is unlikely to show up in Tubular Services margins until 2H 2011, this does not stand out from most of its oil service peers, many of which have already issued guidance related to the Q1 2011 weather impacts...We think investors will continue to be attracted to the company's impressive growth strategy, which we expect to result in 30-35% EPS growth over the next two years."
For more ratings news on Oil States International click here and for the rating history of Oil States International click here.
Shares of Oil States International closed at $75.11 yesterday, with a 52 week range of $35.99-$78.43.
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Global analyst says, "Yesterday AMC, OIS announced its Board of Directors approved the construction of Henday Lodge, located adjacent to its Wapasu Creek lodge in the oil sands region of northern Alberta, Canada...Assuming 80% annual occupancy (1,000/1,264), and revenues per room in line with Wapasu, we estimate the lodge will add ~$15-$20MM in annual EBITDA and 20-25c in EPS accretion in 2012. As we had already modeled the capex guidance, our depreciation estimate remains unchanged but earnings and cash flows improve with the incremental revenues...While we expect Q1 2011 results were adversely impacted by inclement weather and seasonality, likely keepings results flat sequentially for its Well Site Services businesses, and that improved pricing is unlikely to show up in Tubular Services margins until 2H 2011, this does not stand out from most of its oil service peers, many of which have already issued guidance related to the Q1 2011 weather impacts...We think investors will continue to be attracted to the company's impressive growth strategy, which we expect to result in 30-35% EPS growth over the next two years."
For more ratings news on Oil States International click here and for the rating history of Oil States International click here.
Shares of Oil States International closed at $75.11 yesterday, with a 52 week range of $35.99-$78.43.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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