Global Hunter Securities Starts C&J Energy Services (CJES) at Buy; No, We Don't Need To Be Institutionalized

August 16, 2012 8:59 AM EDT
Get Alerts CJES Hot Sheet
Price: $0.31 --0%

Rating Summary:
    7 Buy, 15 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 24 | Down: 17 | New: 14
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Global Hunter Securities initiates coverage on C&J Energy Services (NYSE: CJES) with a Buy. PT $26.00.

Analyst, Jeff Spittel, said, "We believe that vertically integrated completions provider CJES is reasonably well positioned to weather tempestuous North American onshore market conditions in 2012-2013. Before you implore us to check into a methadone clinic, just hear us out for a moment. We all understand and acknowledge that leading-edge hydraulic fracturing pricing isn't headed higher anytime soon. Nevertheless, CJES has reasonably robust contract coverage for the remainder of 2012, which should enable the company to navigate challenges in the next few quarters. Scheduled contract expirations in 2013 are weighted toward H2, when pricing and margins should at least stabilize due to the forthcoming industry-wide evaporation of newbuild horsepower deliveries, consumables cost relief, and growing services intensity in the latest vintage of emerging unconventional oil plays."

Jokingly, Spittel, said, this isn't Halliburton (NYSE: HAL), but CJES also isn't a mom and pop shop either. "We believe that term commitments and recent contract renewals from large independent E&P customers such as Apache (NYSE: APA), Anadarko (NYSE: APC) and EOG Resources (NYSE: EOG), speak to the legitimacy of CJES' growing franchise, which is predicated on operational efficiency and service quality."

For an analyst ratings summary and ratings history on C&J Energy Services click here. For more ratings news on C&J Energy Services click here.

Shares of C&J Energy Services closed at $19.84 yesterday.

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