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Canaccord Genuity Upgrades RPC Inc. (RES) to Buy; Recent Underperformance Offers Opportunity

October 31, 2011 8:16 AM EDT
RES Hot Sheet
Rating Summary:
    1 Buy, 9 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Canaccord Genuity upgraded RPC Inc. (NYSE: RES) from Hold to Buy with a price target of $24.00.

Canaccord analyst, Scott Burk, said, "Underperformance makes it attractive. RES hasn't participated in the rebound of the last month, while its peers (excluding CPX) are up ~30%. YTD the stock is up 4.5%, underperforming its completion peers by ~4%, though it has beat the OSX (down 1.6% YTD)."

"Acquisition still possible. In September, RES outperformed the group by 25-
30% after reports that the company was looking for a buyer. We estimate the
stock has mostly un-priced the likelihood of being bought out, but it remains an attractive candidate due to its low valuation and concentrated pressure pumping business."

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 $18.79 yesterday, with a 52 week range of $14.21-$33.87.


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