Nine Energy Services (NINE) Investor Presentation Implies Capital Returns Doubling - Credit Suisse

Credit Suisse analyst, James Wicklund, reiterated his Outperform rating on shares of Nine Energy Services (NYSE: NINE) after the analyst spent a few days traveling with management. During the trip, the analyst noticed that the first slide of the presentation contained an ROIC target for the year that was 8%, up from the -11% in the prior year. In the commentary, management announced that they expect it to double to 16% within the next few years.

The analyst sees little risk to numbers and a 7x multiple implies a ~$1.2B market cap ($48/shr or ~45% upside) based on his estimates. The analyst went on to state "Mgmt. has minimized exposure to the Permian downturn, sees the Northeast recovering well and early, and has a very bullish view on 2019 activity".

The firm raised the price target to $38 from $34.

For an analyst ratings summary and ratings history on Nine Energy Services click here. For more ratings news on Nine Energy Services click here.

Shares of Nine Energy Services closed at $33.20 yesterday.

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