Wells Fargo Starts RPC Inc. (RES) at Market Perform
Tweet Send to a FriendGet Alerts RES Hot Sheet
Price: $13.31 --0%
Rating Summary:
4 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 14 | Down: 14 | New: 28
Rating Summary:
4 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 14 | Down: 14 | New: 28
Trade RES Now!
Wells Fargo initiates coverage on RPC Inc. (NYSE: RES) with a Market Perform rating and $12-$14 valuation range.
The analyst comments, "Although we believe U.S pressure pumpers are currently oversold, we judge RES as currently valued at too high a premium to be counted as a favorite among small cap service options. RPC's margins and returns have noticeably improved versus larger OFS companies since the company's 2010 decision to ramp-up investment in the Pressure Pumping (PP) portion of its business, more than doubling its HHP capacity within two years and driving PP services to over 50% of total revenues from under 40% during the 5-year preceding period. Today, we estimate RES is valued at a significant 30-50% premium to CJES and SPN, a premium valuation from which we think it would be difficult for RES to outperform. We estimate RES will earn EBITDA/EPS of $660MM/$1.25 and $598MM/$1.08 in 2012 and 2013, respectively."
For an analyst ratings summary and ratings history on RPC Inc. click here. For more ratings news on RPC Inc. click here.
Shares of RPC Inc. closed at $13.66 yesterday, with a 52 week range of $8.75-$23.17.
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
The analyst comments, "Although we believe U.S pressure pumpers are currently oversold, we judge RES as currently valued at too high a premium to be counted as a favorite among small cap service options. RPC's margins and returns have noticeably improved versus larger OFS companies since the company's 2010 decision to ramp-up investment in the Pressure Pumping (PP) portion of its business, more than doubling its HHP capacity within two years and driving PP services to over 50% of total revenues from under 40% during the 5-year preceding period. Today, we estimate RES is valued at a significant 30-50% premium to CJES and SPN, a premium valuation from which we think it would be difficult for RES to outperform. We estimate RES will earn EBITDA/EPS of $660MM/$1.25 and $598MM/$1.08 in 2012 and 2013, respectively."
For an analyst ratings summary and ratings history on RPC Inc. click here. For more ratings news on RPC Inc. click here.
Shares of RPC Inc. closed at $13.66 yesterday, with a 52 week range of $8.75-$23.17.
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
- Development Milestone Achieved at Rare Element's Bear Lodge Project
- Topeka Capital Starts CEVA Inc. (CEVA) at Buy
- Needham & Company Starts Lannett Co (LCI) at Buy
Create E-mail Alert Related Categories
New CoverageRelated Entities
Wells Fargo
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!
