Gabelli Downgrades RPC Inc. (RES) to Hold
Tweet Send to a FriendGet Alerts RES Hot Sheet
Price: $13.31 -0.45%
Rating Summary:
4 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Rating Summary:
4 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Trade RES Now!
Gabelli downgraded RPC Inc. (NYSE: RES) from Buy to Hold.
Gabelli analyst says, "While a backlog of drilled but uncompleted wells will likely absorb some extra capacity, we believe that there is some downside risk from the combination of new capacity in the industry and a switch to drilling in regions with lower horsepower requirements...We adjust our 2010 and 2011 EPS estimates to $0.95 and $1.50, respectively, to reflect the 3-for-2 stock split...We are changing our recommendation to hold on valuation...We remain positive on RPC’s long-term business prospects, particularly as North American land drilling in shale plays continues and renewed interest in conventional oil plays accelerates with oil nearing $90/bbl...However, with only a 7% discount to our split-adjusted 2011 PMV of $23, we would look for a greater margin of safety to recommend purchase."
For more ratings news on RPC Inc. click here and for the rating history of RPC Inc. click here.
Shares of RPC Inc. closed at $31.63 yesterday, with a 52 week range of $9.16-$24.69.
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
Gabelli analyst says, "While a backlog of drilled but uncompleted wells will likely absorb some extra capacity, we believe that there is some downside risk from the combination of new capacity in the industry and a switch to drilling in regions with lower horsepower requirements...We adjust our 2010 and 2011 EPS estimates to $0.95 and $1.50, respectively, to reflect the 3-for-2 stock split...We are changing our recommendation to hold on valuation...We remain positive on RPC’s long-term business prospects, particularly as North American land drilling in shale plays continues and renewed interest in conventional oil plays accelerates with oil nearing $90/bbl...However, with only a 7% discount to our split-adjusted 2011 PMV of $23, we would look for a greater margin of safety to recommend purchase."
For more ratings news on RPC Inc. click here and for the rating history of RPC Inc. click here.
Shares of RPC Inc. closed at $31.63 yesterday, with a 52 week range of $9.16-$24.69.
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
You May Also Be Interested In
- UPDATE: Exane BNP Paribas Downgrades BlackBerry (BBRY) to Underperform; Analyst Says Profit 'Drying Up'
- Albert Fried Downgrades Pandora (P) to Market Perform
- UPDATE: UBS Downgrades Carnival (CCL) to Neutral; Worst May Not Be Behind
Create E-mail Alert Related Categories
Downgrades
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
