Wunderlich Securities Initiates Coverage Lufkin Industries (LUFK) with a Buy

October 13, 2009 7:46 AM EDT

Wunderlich Securities initiates coverage Lufkin Industries (Nasdaq: LUFK) with a Buy rating. Price target $62.

Wunderlich analyst says, "Lufkin's artificial lift products and services focus on the oily plays that should see a rebound domestically with incremental growth internationally. Lufkin's Power business adds consistent cash flow during most cyclical stages. We are initiating coverage with a Buy rating on LUFK shares as we anticipate Lufkin's domestic oilfield service activity to ramp soon following the 70% oil rig count jump since June and Lufkin's international activity to expand as more markets are penetrated."

"Purest oil play of the oilfield service companies. Artificial lift products and services accounts for over 75% of Lufkin s business, more than any other service company. Artificial lift technology includes a broad spectrum of pumps and services used to pull oil out of the ground. We consider the segment the most attractive oilfield service given strong oil prices and the fact that approximately 90% of producing wells require some type of boost to get the oil out of the ground."

To see more analyst ratings on LUFK Click Here.

Lufkin Industries, Inc. and its subsidiaries manufacture and sell oil field pumping units and power transmission products worldwide.

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