Dril-Quip (DRQ) FCF Should Hit Stride in 2021 - CapitalOne

CapitalOne analyst Luke Lemoine reiterated an Equal-weight rating and $47.00 price target on Dril-Quip (NYSE: DRQ) after shares appreciated 56% vs the Oilfield Services average of -18%.

The analyst stated "DRQ's cost savings initiatives are hitting their stride, realizing $43MM of annualized cost savings through 3Q19, and the company still expects to be FCF positive for the full year. Orders are also performing well and could reasonably be near $100MM/qtr in 2020 and north of that in 2021, assuming the continued strength in WW subsea tree demand as well as good adoption of DRQ's new product offerings (VXT Concentric Bore Tree, its BigBore IIe wellhead, and its DXe connnector)".

For an analyst ratings summary and ratings history on Dril-Quip click here. For more ratings news on Dril-Quip click here.

Shares of Dril-Quip closed at $46.90 yesterday.

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