FBR Capital Upgrades Forum Energy Technologies (FET) to Outperform
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Price: $29.93 +0.27%
Rating Summary:
11 Buy, 4 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 10 | Down: 22 | New: 19
Rating Summary:
11 Buy, 4 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 10 | Down: 22 | New: 19
Trade FET Now!
FBR Capital upgraded Forum Energy Technologies (NYSE: FET) from Market Perform to Outperform with a price target of $35.00 (from $30.00) on a much improved risk/reward profile.
The analyst comments, "We downgraded FET last October based on our belief that a falling rig count would be a headwind for the company's drilling technologies business, but we now believe a muted near-term outlook for the business is fully reflected in the stock price. In our view, investors have overlooked FET as a play on the eventual recovery in the U.S. land market, with the stock lagging the performance of the OSX year to date by 730 basis points. This gradual improvement, coupled with the company's exposure to long-term secular industry trends such as a high-grading of the U.S. land rig fleet and growing deepwater subsea development, should drive compelling earnings growth."
Despite the upgrade the firm is lowering 2013 EPS estimate to $1.85 from $2.00 to near-term uncertainty in the drilling technologies business. The firm is also introducing a 2014 EPS estimate of $2.30.
For an analyst ratings summary and ratings history on Forum Energy Technologies click here. For more ratings news on Forum Energy Technologies click here.
Shares of Forum Energy Technologies closed at $26.51 yesterday, with a 52 week range of $18.60-$26.87.
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The analyst comments, "We downgraded FET last October based on our belief that a falling rig count would be a headwind for the company's drilling technologies business, but we now believe a muted near-term outlook for the business is fully reflected in the stock price. In our view, investors have overlooked FET as a play on the eventual recovery in the U.S. land market, with the stock lagging the performance of the OSX year to date by 730 basis points. This gradual improvement, coupled with the company's exposure to long-term secular industry trends such as a high-grading of the U.S. land rig fleet and growing deepwater subsea development, should drive compelling earnings growth."
Despite the upgrade the firm is lowering 2013 EPS estimate to $1.85 from $2.00 to near-term uncertainty in the drilling technologies business. The firm is also introducing a 2014 EPS estimate of $2.30.
For an analyst ratings summary and ratings history on Forum Energy Technologies click here. For more ratings news on Forum Energy Technologies click here.
Shares of Forum Energy Technologies closed at $26.51 yesterday, with a 52 week range of $18.60-$26.87.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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